News Summary
The Smalling Substation’s groundbreaking for the Meta AI Data Center took place on June 27, 2025. This $10 billion project aims to enhance Richland Parish’s economy through job creation and increased local business activity, despite concerns from residents and environmental advocates regarding its impact on community and infrastructure.
Rayville, Louisiana
The groundbreaking ceremony for the Smalling Substation, designed to support the new Meta AI Data Center, was held on June 27, 2025. This $10 billion project, currently underway in Holly Ridge, is set to significantly boost the local economy in Richland Parish, Louisiana. The implications of this large-scale development are manifold, promising job creation while also raising concerns among residents and environmental advocates.
Entergy Louisiana, the utility provider, is taking the lead to ensure that the data center, which will require approximately three times the annual electricity consumed by the entire city of New Orleans, receives sufficient power. In response, Entergy plans to construct three new gas power plants, with the costs for construction and operation being funded by Meta for a period of 15 years.
Entergy Louisiana CEO noted that the potential economic growth in the area is unparalleled, likening it to the economic boom following World War II. However, he expressed concerns about uncertainties in energy and trade policies that could impede long-term investment decisions for companies.
The impact of the Meta data center project on Richland Parish is already being felt. Approximately 5,000 construction jobs are expected to be created during development, with around 500 permanent positions once the facility is operational. Since the announcement of the project, local business activity has surged, with a notable threefold increase in new business permits. The housing market has also experienced dramatic changes, as the influx of construction workers has contributed to a housing crisis in the area.
Local businesses have reported significant increases in sales, with some enterprises like S Mart benefiting notably from the construction boom. The rise in land prices near the data center is striking; farmland that once sold for about $2,500 an acre is now reaching prices between $50,000 to $60,000 an acre.
Despite the promising economic prospects, local residents are expressing a mix of apprehension and enthusiasm regarding the rapid transformation of their community. Some are excited about the new opportunities, while others are concerned about the potential loss of the community’s character and the sustainability of such profound changes. These sentiments are particularly sharp among long-term residents, some of whom have decided to sell their properties, fearing that future developments may disrupt their way of life.
To address the imminent influx of workers, local chambers and organizations are collaboratively working to develop housing solutions, ranging from hotels and RV parks to Airbnb accommodations. This is aimed at ensuring that the needs of the burgeoning population are met adequately as construction progresses.
Meanwhile, the Public Service Commission is poised to vote on Entergy’s plan to expedite the initiative to supply power to the data center. This proposal has raised eyebrows among advocacy groups, who voice concerns regarding its potential impacts on electricity rates for average consumers and the broader market. Critics warn that the significant energy demands of the data center could strain local infrastructure and the regional aquifer, threatening long-term water supply.
Local development officials remain optimistic about the opportunities that the Meta project brings, including a boost in population and tax revenue. The transformation of Richland Parish from a previously overlooked area to a hotspot for investment has not gone unnoticed, drawing attention from various economic sectors eager to explore the potential benefits this project may yield for the region.
Deeper Dive: News & Info About This Topic
- NOLA: Meta AI Data Center in Louisiana
- KNOE: Housing Efforts Near Meta Data Center
- Shreveport-Bossier Advocate: Changes Due to Meta Data Center
- Wall Street Journal: AI Data Center Boom
- KNOE: Gov. Jeff Landry on Traffic Concerns
- Wikipedia: Artificial Intelligence
- Google Search: Meta Data Center Louisiana
- Google Scholar: Meta AI Data Center
- Encyclopedia Britannica: Artificial Intelligence
- Google News: Meta Data Center
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
