Meta reaches $50 billion investment in its 10 million-square-foot Louisiana AI data center, signaling unprecedented capex scale.
Meta announced Monday that its Louisiana data center investment has reached $50 billion and expects to generate substantial local tax revenues as it pursues artificial superintelligence. The Richland Parish Data Center, nicknamed "Hyperion," will comprise nearly 10 million square feet and operate at five-gigawatt capacity—equivalent to a power plant capable of supplying electricity to roughly 4 million average U.S. homes simultaneously, or approximately as much energy as New York City uses on a winter day.
"We're delivering real economic impact alongside the AI infrastructure that will power the future," said Rachel Peterson, Meta's Vice President of Data Centers, in a statement. However, the project's total cost may far exceed the announced figure. According to Bloomberg, a person familiar with Meta's investment plans indicated the project is now estimated to cost $250 billion.
Meta is covering the full cost of infrastructure needed to support the data center during the 20-year service agreement term, shielding customers from utility rate increases that could result from the facility's massive power demands. "Meta's presence drives down rates for other customers by covering a sizable portion of Entergy's costs to serve, strengthens our grid and helps ensure bills are lower than they otherwise would have been without this transformative project," said Phillip May, Entergy Louisiana President and CEO, in a statement.
The project is generating significant economic activity in Louisiana. Meta has already contracted more than $1.6 billion with local businesses. The facility is expected to support 7,500 construction jobs and 1,000 operational jobs while generating substantial investments in local infrastructure and community services. Meta also committed to contributing $215 million to Entergy's The Power to Care low-income bill assistance and energy efficiency programs, and pledged to fund up to 2.5 gigawatts of clean, renewable energy over the 20-year agreement.
Governor Jeff Landry approved a 20-year sales tax exemption in 2024 for data centers built before July 2029, provided they create at least 50 jobs and $200 million in capital investment. "This commitment from Meta puts Louisiana at the center of America's future in artificial intelligence, positioning our nation to compete and lead globally," Landry said. "In just two years, we've secured more than $150 billion in new investment by creating an environment where companies can move quickly and build at scale."
States are increasingly competing to attract major AI infrastructure projects like Hyperion because of the jobs, tax revenue, and public infrastructure funding they generate. Meta's investment is part of the company's broader push into artificial intelligence, which included the release of two major AI models last week and positioned the company for its best week on the stock market since 2024, according to CNBC. However, CEO Mark Zuckerberg recently said that Agentic AI technology is progressing more slowly than expected, according to Reuters.
The expansion has drawn opposition from some consumer and environmental advocates. The Alliance for Affordable Energy has argued against the data center project, contending it will raise utility bills. Environmental and consumer watchdog groups have more broadly advocated against data center expansion, claiming such projects strain water supplies and increase pollution.