Entergy Corp.'s proposal to construct three natural gas plants to power Meta Platform Inc.'s largest data center was approved by Louisiana regulators.
The company's most advanced artificial intelligence models will be supported by Meta's newest and biggest data center, a 4 million-square-foot building located in rural Louisiana.
According to Mark Zuckerberg, CEO of Meta, the facility, called Hyperion, will be almost as big as Manhattan. It is anticipated to use up to five gigawatts of electricity when operating at full capacity.
As a result of the AI boom, the US is experiencing its largest power consumption spike in decades, which is driving up electricity costs and igniting clamor for additional infrastructure.
Phillip May, CEO of Entergy Louisiana, Meta will cover its portion of the project's expenses. The project is anticipated to produce roughly 2.3 gigawatts of electricity.
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The company claims that it would also acquire up to 1.5 gigawatts of solar energy and construct new transmission lines to service the facility.
According to a Citigroup analysis headed by analyst Ryan Levine, Entergy claimed that delays would put Meta at risk of having to establish its data center in a neighboring state, therefore the Louisiana Public Service Commission expedited the license.
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Some contend that the plants will put the environment and public health in jeopardy and that their construction will increase consumer costs.
Logan Burke, executive director of the Alliance for Affordable Energy, said the regulator "is putting Entergy's profits and Big Tech's interests ahead of Louisianans' concerns about their already unaffordable electricity bills." "This project will undoubtedly have an impact on residents' water and electricity bills."
In addition, Entergy has suggested purchasing up to 1.5 gigawatts of solar energy facilities to supplement the natural gas power plants and plans to construct additional transmission lines to power the data center. Although the overall influence on the environment and local community is still a controversial topic, this dual strategy seeks to strike a compromise between the need for dependable energy and environmental concerns.