'a Black Hole of Energy Use': Meta's Massive AI Data Center is Stressing Out a Louisiana Community
upstart writes:
'A Black Hole of Energy Use': Meta's Massive AI Data Center Is Stressing Out a Louisiana Community:
A massive data center for Meta's AI will likely lead to rate hikes for Louisiana customers, but Meta wants to keep the details under wraps.
Holly Ridge is a rural community bisected by US Highway 80, gridded with farmland, with a big creek-it is literally named Big Creek-running through it. It is home to rice and grain mills and an elementary school and a few houses. Soon, it will also be home to Meta's massive, 4 million square foot AI data center hosting thousands of perpetually humming [4:01 --JE] servers that require billions of watts of energy to power. And that energy-guzzling infrastructure will be partially paid for by Louisiana residents.
The plan is part of what Meta CEO Mark Zuckerberg said would be "a defining year for AI." On Threads, Zuckerberg boasted that his company was "building a 2GW+ datacenter that is so large it would cover a significant part of Manhattan," posting a map of Manhattan along with the data center overlaid. Zuckerberg went on to say that over the coming years, AI "will drive our core products and business, unlock historic innovation, and extend American technology leadership. Let's go build! "
What Zuckerberg did not mention is that "Let's go build" refers not only to the massive data center but also three new Meta-subsidized, gas power plants and a transmission line to fuel it serviced by Entergy Louisiana, the region's energy monopoly.
Key details about Meta's investments with the data center remain vague, and Meta's contracts with Entergy are largely cloaked from public scrutiny. But what is known is the $10 billion data center has been positioned as an enormous economic boon for the area-one that politicians bent over backward to facilitate-and Meta said it will invest $200 million into "local roads and water infrastructure."
A January report from NOLA.com said that the the state had rewritten zoning laws, promised to change a law so that it no longer had to put state property up for public bidding, and rewrote what was supposed to be a tax incentive for broadband internet meant to bridge the digital divide so that it was only an incentive for data centers, all with the goal of luring in Meta.
But Entergy Louisiana's residential customers, who live in one of the poorest regions of the state, will see their utility bills increase to pay for Meta's energy infrastructure, according to Entergy's application. Entergy estimates that amount will be small and will only cover a transmission line, but advocates for energy affordability say the costs could balloon depending on whether Meta agrees to finish paying for its three gas plants 15 years from now. The short-term rate increases will be debated in a public hearing before state regulators that has not yet been scheduled.
The Alliance for Affordable Energy called it a "black hole of energy use," and said "to give perspective on how much electricity the Meta project will use: Meta's energy needs are roughly 2.3x the power needs of Orleans Parish ... it's like building the power impact of a large city overnight in the middle of nowhere."
By 2030, Entergy's electricity prices are projected to increase 90 percent from where they were in 2018, although the company attributes much of that to damage to infrastructure from hurricanes. The state already has a high energy cost burden in part because of a storm damage to infrastructure, and balmy heat made worse by climate change that drives air conditioner use. The state's homes largely are not energy efficient, with many porous older buildings that don't retain heat in the winter or remain cool in the summer.
"You don't just have high utility bills, you also have high repair costs, you have high insurance premiums, and it all contributes to housing insecurity," said Andreanecia Morris, a member of Housing Louisiana, which is opposed to Entergy's gas plant application. She believes Meta's data center will make it worse. And Louisiana residents have reasons to distrust Entergy when it comes to passing off costs of new infrastructure: in 2018, the company's New Orleans subsidiary was caught paying actors to testify on behalf of a new gas plant. "The fees for the gas plant have all been borne by the people of New Orleans," Morris said.
In its application to build new gas plants and in public testimony, Entergy says the cost of Meta's data center to customers will be minimal and has even suggested Meta's presence will make their bills go down. But Meta's commitments are temporary, many of Meta's assurances are not binding, and crucial details about its deal with Entergy are shielded from public view, a structural issue with state energy regulators across the country.
[Editor's Note - The source is far too long to include here. I recommend reading the original source (in the link) for more of the details.--JR]
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