Meta’s $27 Billion AI Data Center: 3 Problems Revealed by the Winter Storm
- Data center under construction in northern Louisiana, 3 times the power of New Orleans
- Winter storm causes power outages for 130,000 homes, raising concerns about grid stability
- Consumer groups refute “inadequate grid analysis,” warn of electricity rate hikes
Louisiana ‘Icepocalypse’ and Meta’s Data Center
Meta is investing $27 billion to build a massive AI data center in Richland Parish, Louisiana. This facility will consume three times the annual electricity of New Orleans.[The Verge]
On January 24th, a winter storm hit the region. Residents are calling the cold snap an ‘icepocalypse.’ Ice snapped power lines, and Entergy Louisiana restored power to approximately 130,000 homes.[The Verge]
Concerns Over Electricity Rate Hikes and Grid Controversy
Entergy is building three gas-fired power plants to supply power to Meta. The data center is scheduled for completion in 2030. Logan Burke of the Alliance for Affordable Energy warns that “the operation of gas-fired power plants will increase pressure to raise electricity rates.”[The Verge]
Meta counters that it will bear the capital costs of the power plants for 15 years and that grid costs will be reduced by 10%, resulting in savings of $650 million. However, Burke points out that additional costs, such as transmission line upgrades, are not included.[The Verge]
Demands for Grid Reanalysis and Community Conflict
Burke’s organization and the Union of Concerned Scientists have called for a reanalysis of Entergy’s grid analysis, claiming it is inadequate. Energy analyst Paul Arbaje stated that “rushing without sufficient review will cause greater damage.”[The Verge]
Donna Collins, a fifth-generation resident, said, “I’m not against progress, but I’m worried about electricity rates and property taxes.” Balancing the expansion of AI infrastructure with the protection of residents is a challenge.[The Verge]
Frequently Asked Questions (FAQ)
Q: How much power will Meta’s Louisiana data center use?
A: The Richland Parish data center is expected to use approximately three times the annual electricity of New Orleans. Entergy is building three natural gas power plants and aims to complete them by 2030. The total investment is $27 billion.
Q: What was the extent of the winter storm damage?
A: The January 24th storm caused ice to accumulate on power facilities, snapping power lines. Entergy restored power to approximately 130,000 homes. Some residents experienced power outages for four days, and electricity rate increases are expected due to soaring gas prices.
Q: What is the likelihood of electricity rate increases for residents?
A: Meta claims savings of $650 million over 15 years, but consumer groups dispute this. They point out that increased gas demand and transmission line upgrade costs are not included. There is also the possibility of additional burdens during storms after the grid connection.
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References
- How an ‘icepocalypse’ raises more questions about Meta’s biggest data center project – The Verge (2026-02-11)