Cleco plans to build a new 756-megawatt natural gas power plant as part of a broader agreement that includes supplying electricity to Applied Digital’s planned $3.6 billion data center in Rapides Parish, The Center Square reports.
The facility could require up to 430 megawatts of power, making it the largest single load ever served by Cleco Power.
Applied Digital would pay the full cost of the infrastructure needed to connect the data center to Cleco’s grid, including new substations, upgrades to existing substations and transmission improvements. The company would also fund a separate 10-year agreement that allows Cleco to secure additional capacity, including 370 megawatts from the Tenaska Frontier Generating Station in Texas.
Cleco says the proposed 756-megawatt gas plant is needed regardless of the data center because older power plants are expected to retire and the utility will need additional reliable generation. The plant would serve all Cleco customers and is expected to operate for about 30 years.
Cleco says the addition of Applied Digital as a major customer will reduce the financial burden on existing customers.
The utility estimates Applied Digital will contribute nearly $3 billion over 15 years in non-fuel charges that help cover generation, transmission, storm recovery and other costs. It also projects the agreement could provide more than $700 million in net benefits to existing customers over the same period by reducing the amount they would otherwise need to pay toward the new plant and related expenses.
The Center Square has the full story.
