Louisiana Strikes Deal with Meta, Offering Tax Breaks for Massive Data Center

Swaraj

Published on September 30, 2025

Meta is going on with plans to create Richland Parish, Louisiana’s biggest data center, a massive $10 billion project. Although the corporation calls the initiative a long-term investment in artificial intelligence and digital infrastructure, the development is controversial over its actual environmental and financial cost.

Expected to be a mainstay in Meta’s expanding AI activities, the new facility spans 4 million square feet. Still, detractors contend the agreement comes with strong environmental and financial strings. To ensure Meta’s presence, Louisiana leaders put together a sizable reward plan. Among the most striking is a 20-year exemption from sales taxes on data center equipment. The state is helping with infrastructure improvements to satisfy the great power needs of the facility, reportedly more than double the peak energy demand of New Orleans.

Natural gas will provide much of that energy. Estimated to cost upward of $550 million, the regional utility company, Louisiana, intends to build new gas-fired turbines and a high-capacity transmission line. Environmental organizations worry about the action as they view it as a step backwards in the state’s move toward greener energy sources. Although Meta has vowed to create 500 permanent jobs with an average salary of $82,000, local observers point out that the arrangement has no stringent constraints for local recruiting.

Moreover, the job definition has flexible conditions permitting numerous part-time jobs to be counted as full-time equivalents, possibly lowering the count of steady, full-time employment for Louisiana residents. Proponents of the plan emphasize the short-term economic stimulus, especially the 5,000 construction jobs anticipated throughout the buildout phase, and the possible future tax income. Rising utility charges for people who could end up being affected, however, have alarmed community leaders and energy advocates about long-term effects, paying energy costs for the data center. Meta’s project will be based on a litmus test for how states juggle economic growth, new 2mm laser tech for AR glasses, energy policy, and corporate incentives in the era of AI infrastructure as construction starts.