Meta’s $10B Data Center Sparks Controversy With Gas Power Approval
▼ Summary
– Meta’s largest data center in Louisiana will be powered by three new natural gas plants approved by state regulators.
– The power plants will generate 2.25 gigawatts, with potential for the data center to eventually draw 5 gigawatts as it expands.
– An industry group including Dow, Chevron, and ExxonMobil is concerned about special treatment for Meta’s planned 1.5 gigawatts of solar power.
– Louisiana regulators worry ratepayers will bear costs after Meta’s 15-year contract expires, as gas plants typically operate for 30+ years.
– The natural gas plants will make Meta’s 2030 net zero pledge harder to achieve, requiring carbon credits to offset decades of emissions.
Meta’s ambitious $10 billion data center project in Louisiana has ignited significant debate following state regulators’ approval of a major natural gas power agreement. The tech giant has partnered with utility provider Entergy to construct three large-scale natural gas plants specifically to energize what will become its largest data center facility. This decision places Meta’s sustainability commitments under scrutiny, especially as the company simultaneously pursues renewable energy investments.
The newly approved power plants are slated to become operational in 2028 and 2029, with a combined generating capacity of 2.25 gigawatts. As the data center expands, its total power demand could eventually reach 5 gigawatts, raising questions about long-term energy sourcing and environmental impact.
Local and industry reactions have been mixed. A coalition of major corporations, including Dow Chemical, Chevron, and ExxonMobil, has voiced concerns over potential preferential treatment for Meta and Entergy regarding a separate 1.5-gigawatt solar initiative. These companies, who have faced their own challenges in securing renewable energy, formed an advocacy group to ensure fair access to green power infrastructure.
Another point of contention is the 15-year contractual agreement between Meta and Entergy. At least one member of the Louisiana Public Service Commission has raised alarms about the financial burden on ratepayers once the contract ends. Natural gas facilities often remain operational for 30 years or more, potentially leaving consumers responsible for long-term costs.
Critics also highlight the risk of budget overruns, a common issue with energy projects of this magnitude. According to analyses, utility customers frequently end up covering these excess expenses. Additionally, a $550 million transmission line dedicated to the data center will also be funded by local ratepayers.
Despite recently announcing a 100-megawatt renewable energy purchase, Meta’s reliance on natural gas complicates its publicly stated goal of achieving net zero emissions by 2030. The new plants will generate substantial carbon emissions for decades, requiring the company to invest heavily in carbon removal credits to balance its environmental footprint. This approach has drawn skepticism from advocates who argue that offsetting is not a substitute for direct emission reductions.
(Source: TechCrunch)
