To power Meta's largest data center, Entergy has been approved to build three new natural gas power plants
Entergy has received approval from Louisiana regulators to build three new natural gas power plants to supply power for Meta's largest data center. This data center covers an area of 4 million square feet and has an annual electricity consumption of up to 5 gigawatts. Although Meta will bear the costs of the energy projects, consumer advocacy groups are concerned that this plan will drive up electricity prices and impact public health. Entergy's stock price rose by 1.73%
According to a press release from Entergy (ETR.US) on Wednesday, the Louisiana Public Service Commission has approved its plan to build three new natural gas power plants aimed at supplying power to Meta's (META.US) largest data center.
Meta's latest and largest data center is located in rural Louisiana, covering an area of 4 million square feet (approximately 370,000 square meters), and is designed to support the operation of the company's advanced artificial intelligence (AI) models. When fully operational, its annual electricity consumption is expected to reach up to 5 gigawatts.
According to a report led by Citigroup analyst Ryan Levine, Entergy had warned that if approvals were delayed, Meta might relocate the data center to other competing states. The Louisiana Public Service Commission thus initiated a fast-track approval process to pass the plan.
It is understood that the enormous energy consumption of AI is forcing the U.S. power grid system to undergo reconstruction and is creating demand for new infrastructure—the surge in energy-intensive data centers has led to continuous increases in electricity prices. Although Phillip May, CEO of Entergy Louisiana, stated that Meta would bear the corresponding costs of its energy projects, consumer advocacy organizations pointed out that the natural gas power plant plan would not only raise electricity prices but also pose threats to public health and the environment.
Logan Burke, executive director of the Alliance for Affordable Energy, stated in a press release that regulators "prioritized the interests of tech giants and Entergy's profits, completely ignoring the public's concerns about high electricity prices. There is no doubt that this project will exacerbate the burden of electricity costs on residents and affect water supply."
On Wednesday, Entergy's stock price rose by as much as 1.73%. The company will also build new transmission lines to supply power to the data center and procure up to 1.5 gigawatts of solar power facilities
