Meta to Build $10 Billion AI Data Center in Louisiana as Elon Musk Grows Tennessee AI Facility

Meta has announced plans to build a $10 billion artificial intelligence data center in northeastern Louisiana, which will be the largest AI data center the company has ever constructed. The new facility is expected to create 500 permanent jobs in operations and 5,000 temporary construction jobs. Louisiana Governor Jeff Landry stated that this project will have a "transformative" impact on the state's growing tech industry. However, some environmental groups have raised concerns about the data center’s reliance on fossil fuels, fearing that it could lead to higher energy costs for residents in Louisiana in the future.

At the same time, Elon Musk's AI startup, xAI, is expanding its supercomputing project in Memphis, Tennessee. The Memphis Chamber of Commerce also announced that companies like Nvidia, Dell, and Supermicro Computer will be establishing operations in the city. Louisiana is one of several states offering tax incentives and other benefits to attract large tech companies to build energy-intensive data centers. The U.S. Department of Commerce has reported that existing data centers in the U.S. are insufficient to meet the growing demand for AI, with the sector expected to expand by 9% annually by 2030.

Meta also plans to invest $200 million to improve local roadways and water infrastructure to offset the water usage of the new facility, which is expected to be completed by 2030. Meanwhile, the energy company Entergy is accelerating plans to build three natural gas power plants in Louisiana to supply electricity to Meta’s data center. Some environmental groups oppose further locking the state into a fossil-fuel-based energy infrastructure. Meta, however, has committed to helping add 1,500 megawatts of renewable energy to the grid in the future.