Tech giant hit with backlash for withholding details on billion-dollar project: 'This is a new ballgame'

One of Louisiana's biggest economic development projects is facing tough scrutiny from local advocates who say clear answers are lacking about environmental and cost concerns for residents.   

What's happening?

Meta is planning a $10 billion artificial intelligence data center in the state's northeast region that would depend on three new gas-fired power plants to be built by integrated energy company Entergy, according to a NOLA.com report. 

In a recent hearing with the state's Public Service Commission, advocacy groups argued that the tech giant should be required to answer questions about Entergy's $3 billion energy project.

However, Entergy and a PSC lawyer argued that the request could set a bad precedent for future economic development, adding that state law doesn't require Meta or its subsidiary to be party to the case.

"This is a new ballgame," said Paul Arbaje, an energy analyst with the Union of Concerned Scientists, one of the advocacy groups, in the report.

"I don't quite buy that [Meta] can sit this one out and not have to answer tough questions."

Susan Miller, a lawyer for the advocacy groups, explained that Meta and its subsidiary need to provide detailed information about the long-term effects these plants may have on ratepayers.

Entergy's lawyer said that some of the requests were "extreme and draconian," adding that it could signal to other potential developers that they're not welcome. 

Although Meta promises to match its energy use with 100% clean and renewable energy, the use of gas to power the data centers simply adds more planet-heating gases to an already stressed environment.  

Gas plants are known to emit nitrogen oxides, which contribute to smog and can react with other atmospheric substances to produce ground-level ozone, according to the UCS. This could have major health consequences for nearby residents.

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Why is Meta's silence on the project so concerning?

Unsurprisingly, Meta failed to respond to NOLA.com's requests for comment. 

While big corporations put huge sums of money into large-scale development projects, local communities often feel that their opinions and requests are easily overlooked. 

A Louisiana Economic Development press release touted the proposed benefits of the new data center, saying it would result in around 1,500 jobs in the northeast region. 

However, NOLA.com shared that Entergy has no documentation supporting those claims, nor does it have details regarding Meta's specific energy requirements, instead pointing to the company's sustainability report.  

Without taking responsibility for the environmental impact of the project and its potential to influence energy rates for consumers, Meta's claims ring quite hollow.

Logan Burke, executive director of the Alliance for Affordable Energy, shared a statement with NOLA.com, saying: "If Meta is not in the proceeding, then we can't depose them."

In addition, Entergy is looking to shift $5 billion in construction costs to its rate-paying customers, which could mean higher rates for energy customers in order to subsidize Meta's project, as Business Insider detailed. 

What's being done about this development?

The advocacy groups are continuing to challenge portions of Entergy's application to power Meta's new data center, arguing that it hasn't sufficiently proved that gas is the most cost-effective energy option. 

Others might ask why more sustainable alternatives aren't being considered at the outset, rather than merely being an afterthought.

It's important to be an advocate for change and push for transparency in the face of megaprojects that can have economic benefits but also potential deleterious effects for the environment and adversely affect energy costs for consumers.

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