GET DAILY REPORT FREE
A new task force created by Senate President Cameron Henry last met a couple weeks ago with a single item on the agenda: a discussion of energy needs for data center projects.
The point is not to single out data centers for extra scrutiny, Henry says. But data centers need massive amounts of energy, and as Louisiana residents deal with unexpected brownouts on random days, it’s time for a frank and open discussion about how to meet everyone’s needs, he says.
“We want to make sure that we have enough power to provide to everyone,” Henry says. “And if we don’t have it, once we calculate how much is needed, how are we going to get the power?”
The Louisiana Public Service Commission approved Entergy Louisiana’s plan to power Meta’s multibillion dollar data center planned for Richland Parish in August. Entergy plans to build three new gas-fired power plants and new transmission infrastructure to provide the 2.3 GW of energy the center will need.
While there are measures in the agreement the PSC approved meant to mitigate the risks, some experts are concerned that the project could lead to higher bills for Entergy’s ratepayers. Similar centers meant to support artificial intelligence applications are sprouting up across the country, and Entergy says more could be on the way to Louisiana.
If rates go up in Jefferson Parish, for example, constituents will call Henry’s office wanting to know why, and what the Legislature plans to do about it. If that call comes, he wants to have an intelligent answer.
And if there isn’t a good answer, that could threaten the economic development that state officials are hoping to see over the next several years. Henry stresses that he doesn’t have any preconceived notions about what the task force will come up with; maybe they’ll find out that Louisiana is doing everything right in this area.
“There’s no point in trying to hide the discussion or pretend like we don’t need to have it,” Henry says. “It’s something that we need to do, and we’re going to push it through until we get some good, solid answers moving forward.”
Senate Natural Resources Chair Bob Hensgens, who is on the task force, says the fact that electricity rates in Louisiana remain low compared to the rest of the country, and that Meta chose Louisiana, could indicate that the state already has the right model. But “our energy world is changing,” and it’s important to make sure the state is ready for what’s next, he says.
“Data centers are coming,” Hensgens says. “And we don’t reverse technology in this country. I use Grok [X’s AI tool] five times a day.”
The PSC also has a spot on the task force. PSC Chair Mike Francis tapped Executive Secretary Brandon Frey to fill that role.
Commissioner Davante Lewis says the Louisiana PSC, in contrast to the approach in many other states, has independent constitutional authority to regulate power generation and infrastructure.
Lewis says he doesn’t think Henry is trying to encroach on that authority, though some legislators might not fully understand how the commission exercises its responsibilities. But he does see room for collaboration.
For example, while most data center projects will be looking to use some renewable energy, Louisiana has trouble permitting and siting wind and solar, he says. Lawmakers could help to bridge that gap with the locals.
“If Meta says, ‘I want to build 2,000 megawatts worth of solar,’ and then we turn around and Richland Parish and Sabine Parish and Morehouse Parish all say ‘no solar here,’ that makes it hard to do,” Lewis says.
Louisiana Economic Development Secretary Susan Bourgeois was not available for comment, though LED provided the following statement: “This Task Force is an important initiative for Louisiana’s long-term economic competitiveness. From LED’s perspective, it provides a coordinated forum for stakeholders to assess how Louisiana’s energy infrastructure can meet the needs of a rapidly growing and evolving economy. A modern, reliable and affordable electric grid is foundational not only for attracting new investment but also for supporting existing industries.”
Henry’s Senate Resolution 195 created the Task Force on Energy Infrastructure and Modernization. The group’s report is due to the Senate by March 1.
