A new executive order from Louisiana Gov. Jeff Landry aims to attract AI-powering data centers to the state while protecting residents from the higher electricity bills that can accompany the energy-intensive facilities.
What happened?
According to the Louisiana Illuminator, Louisiana Economic Development Secretary Susan Bourgeois has 90 days following the June 25 executive order to create new standards for data centers that want the state's Data Center Sales and Use Tax Exemption.
The outlet reported that the order casts data centers as a "once-in-a-generation opportunity" for rural economic development but says their growth should not leave residents paying more for electricity.
The order comes as Entergy Louisiana, one of the state's largest utilities, plans to purchase an aging power plant in southeast Texas to help meet the electricity demand of a new Meta data center under construction in Louisiana.
According to an analysis prepared for the Louisiana Public Service Commission by consultant Lane Sisung and cited by the Louisiana Illuminator, 1.1 million Entergy Louisiana customers could see meaningful bill increases if the utility goes forward with its $1.8 billion plan.
Sisung said the elevated price is "predominantly attributable" to the electricity needs of Meta's Hyperion data center in northeast Louisiana, the Louisiana Illuminator reported.
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Landry previously said on social media that Entergy and Meta had promised not to pass the costs of the power plant purchase on to ratepayers. However, the analysis challenges that claim, concluding that customers could still end up shouldering part of the expense. Both companies have disputed Sisung's conclusion, according to the outlet.
Entergy Louisiana CEO Phillip May also reportedly stood beside the governor when the new order was signed, even as regulators continue to weigh the proposed plant purchase.
Why does it matter?
The core question is who pays when energy-intensive tech projects arrive.
If utilities build or buy more power generation to serve data centers and then spread those costs across the grid, households can end up feeling the effects in their monthly electric bills.
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That concern is growing as AI expands. Many large data centers are being built to support artificial intelligence tools, which can help optimize power systems, forecast electricity demand, and ease the integration of clean energy sources.
According to the Louisiana Illuminator, Public Service Commission member Davante Lewis, a Democrat from Baton Rouge, called Landry's event a "PR stunt," while Republican commissioners, who hold a 3-2 majority, have reportedly signaled they may reject Entergy's proposal to purchase the Texas power plant.
What's being done?
Landry's order does not directly control Entergy's power plant plans, since those decisions are regulated by the Public Service Commission.
Instead, it leans on the state's tax break for data center projects. Essentially, under the new rules, a data center that raises rates for customers would not be eligible for tax breaks unless the benefit it provides outweighs the cost.
Consumer advocates say that approach is reasonable, though they remain skeptical about how much the order will actually change.
Jackson Voss, policy director for the Alliance for Affordable Energy, told the Louisiana Illuminator that Landry last year urged regulating officials to speed up their review of Entergy's agreement to supply power to Meta as part of his "Lightning Speed Initiative."
"We would not be facing these questions in this same way if it weren't for his lightning initiative," Voss told the outlet.
Large infrastructure deals tied to data centers can influence electricity prices for years, and public hearings are often among the few chances customers have to weigh in before costs are set.
In a statement cited by the Louisiana Illuminator, Sierra Club Delta chapter chair Angelle Bradford Rosenberg said: "Gov. Landry wants to have his cake and eat it too, but it's totally out of touch to welcome this massive data center boom and expect concerned Louisianans to go along with it."
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