Meta orders 10 gas power plants for Hyperion AI campus in Louisiana-over triple the initial plans
Fortune • • general
Key Points:
- Meta has partnered with Entergy to build and finance seven new power plants in Louisiana, adding to three previously approved plants, totaling 10 plants with 7.5 gigawatts of capacity, increasing the state's grid by over 30%.
- Meta is also funding up to 2.5 gigawatts of renewable energy capacity, including battery storage, to support its large AI data center campus in Richland Parish, Louisiana, which is part of a $27 billion joint venture to develop the Hyperion AI hub.
- The Louisiana Public Service Commission must approve the new power projects; Entergy emphasizes that Meta will cover the costs, aiming to avoid burdening other ratepayers and potentially saving Louisiana taxpayers billions over time.
- Entergy's stock surged 7% following the announcement, reaching a record market cap of about $50 billion, reflecting investor confidence in the collaboration and its economic impact.
- Critics warn that after the 15-year contract term, if Meta reduces power demand, ratepayers might bear the costs, though Entergy asserts the projects will enhance grid reliability, support economic growth, and keep energy rates affordable.
