(The Center Square) — The recently announced Meta datacenter has been hailed by Louisiana’s leaders as a “game changer.”
The project promises a great deal in the way of jobs, investments in infrastructure, clean energy and assurances that the project will not worsen rates for Louisiana residents.
The rapid rise of data centers — 23 states are projected to host gigawatt scale facilities by 2030 — has utilities scrambling to meet unprecedented demand. In 2024 alone, 50 terawatt-hours of new data center load came online, dwarfing traditional utility planning for smaller, gradual growth. This surge, experts warn, risks driving up electricity rates unless tech companies step up.
“We need to have structures in place to ensure that, yeah, not only are the data centers that are coming online held accountable for the costs that are going to be incurred into the rest of the system to hold other ratepayers harmless,” Jeremy Fisher, a senior strategy and technical advisor with the Sierra Club, said. “But we also need to make sure that they have enough skin in the game, that they are actually coming in with a commitment that is real.”
As far as “commitment” goes, Meta has promised 5,000 jobs, average salaries of $82,000, and “protections and benefits for all customers”
“Rates are not going to go up, and, in fact, may go down,” Jody Montelaro, Entergy’s public relations representative told the Joint Legislative Committee on Technology and Cybersecurity.
According to Montelaro, Meta will cover past storm costs, nuclear plant maintenance, and statewide transmission upgrades, offsetting its massive energy use. These commitments, Montelaro said, protect customers and could stabilize or reduce rates.
Montalero also offered insight into how Entergy and the state is working to diversify its energy portfolio. As of 2025, Entergy has over 3,600 megawatts worth of solar power in service across the south, with 17 projects located in Louisiana.
From 2022 to 2024, the Louisiana Public Service Commission approved an extra 799 megawatts.
But is it too good to be true?
Data centers are under a great deal of scrutiny because they use stupendous amounts of electricity, which can increase overall costs.
According to a study from Bain & Company, data centers alone could demand a 7% to 26% jump in energy generation by 2028, far exceeding historical growth rates.
“Traditional rate structures, which spread costs evenly across customer groups, are inadequate for the vast energy demands of data centers,” the study wrote. “Some utilities are developing new rate designs that ensure data centers bear the full incremental costs of their energy usage, including long-term contracts with minimum charges.”
“Louisiana actually has surprisingly high energy usage relative to other states, even in the South,” Nathan Schluter, an energy expert at Home Energy Club, told The Center Square. “In Texas, the average usage is somewhere around 1,100 kilowatt hours per month. In Louisiana, it’s around 1,500 so that’s an additional like 20 to 30 odd percent of usage on top of Texas, which already has relatively high use.”
The hot, humid summers, the extreme weather and aging homes all contribute to high usage, which can lead to a higher bill. According to Home Energy Club, Louisianans spend more on electricity than any other state, with electricity costs accounting for 3.45% of their median household income.
“Looking at electricity costs as a percentage of income reveals that Southern states face the heaviest burden,” the club wrote. “Louisiana leads, with electricity accounting for 3.45% of median household income.”
This is why an “all of the above” approach to energy is so critical. When a state relies on only a few sources of electricity, it becomes more vulnerable to supply disruptions, price volatility, and grid instability.
If a major power source — such as natural gas, coal, or renewables — experiences shortages due to extreme weather, fuel supply issues, or extreme demand, electricity prices can rise. In 2023, 76% of electricity in Louisiana was generated from natural gas, according to the Energy Information Administration.
A diverse energy portfolio, incorporating renewables like solar and wind alongside traditional sources like nuclear and natural gas, helps balance supply and demand.
Furthermore, expanding energy sources can reduce dependence on any single fuel type, encourage competition, and foster innovation in energy efficiency and storage technologies.
Meta and Entergy Louisiana’s partnership to match 100% of the data center’s electricity usage with clean, renewable power may help accelerate the transition to a more resilient energy system while supporting sustainability goals.
“The customer protections are in place,” Montalero said. “The requisite deposits and all are in place such that the customers are not going to be left holding the bag for these new particular assets that will also, by the way, be benefiting the customer base.”
This article was originally published at www.thecentersquare.com
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