Meta has agreed to pay for the energy infrastructure needed to run its massive new data centre in Louisiana, a move that could ease concerns over rising electricity demand linked to artificial intelligence.
According to a report by The Wall Street Journal, the tech giant has struck a deal with Entergy Louisiana to support the power needs of the $27bn project. The company is building a 4 million square foot facility in Richland Parish, which is expected to be its largest data centre to date.
Power plan to support growing AI demand
Under the agreement, Meta Platforms will fund seven new natural gas power plants along with 240 miles of high-voltage transmission lines. These plants are expected to generate a combined 5,200 megawatts of electricity, while the transmission network will operate at 500 kilovolts.
The company will also invest in battery storage systems across three locations to help manage supply and demand. In addition, Meta has committed to supporting up to 2,500 megawatts of new renewable energy projects.
The agreement includes a separate understanding for possible future investment in nuclear energy, although details remain limited.
Pressure grows over environmental impact
The move comes as major technology firms face increasing criticism over the environmental impact of energy-intensive AI data centres. These facilities require vast amounts of electricity, raising concerns about higher utility costs for local residents and increased carbon emissions.
In response, several companies, including Meta, have pledged to cover the full cost of new power generation tied to their projects. The idea is to prevent existing consumers from bearing the financial burden of expanding energy infrastructure.
However, the commitment is not legally binding and lacks clear enforcement, which has raised questions about how effective it will be in practice.
Calls for stricter regulation
Public concern over AI and its infrastructure footprint is growing. A survey conducted in December showed that around 60 percent of Americans support stronger regulation of artificial intelligence.
Lawmakers have also started to respond. Bernie Sanders and Alexandria Ocasio-Cortez recently introduced legislation calling for a pause on new data centre construction until clearer rules are in place.
The debate highlights a wider challenge for the tech industry, which is trying to expand rapidly while also addressing environmental and social concerns tied to its growth.
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