How Entergy's Deal With Meta Will Save Local Customers $2bn

Entergy Louisiana has announced a second agreement with Meta to supply power to the tech giant's hyperscale data centre in Richland Parish, Northeast Louisiana, bringing the total projected customer benefit from both deals to approximately US$2.65bn over 20 years.

The latest agreement, disclosed on 27 March, adds US$2bn in expected customer savings on top of the US$650m already announced under a prior arrangement.

At its core, the deal is structured to ensure Meta bears the full cost of the new infrastructure it requires – a principle that has become something of a flashpoint in US energy policy as data centre demand accelerates.

What is actually being built

The infrastructure commitments are substantial.

Entergy Louisiana plans to construct seven natural gas-fuelled combined-cycle power plants totalling more than 5,200 megawatts, designed with provisions for future carbon capture and hydrogen co-firing.

Alongside that generation capacity, the company intends to build approximately 240 miles of new 500 kV transmission lines linking South Louisiana to North Louisiana and Arkansas, as well as battery storage across three sites and nuclear uprates.

Meta has also committed to supporting up to 2,500 megawatts of new renewable resources and signed a memorandum of understanding to explore future nuclear development – though the latter remains exploratory at this stage.

The data centre itself has the potential to scale to 5 gigawatts, which would make it among the largest single power consumers in the US.

The ratepayer question

The thorniest issue in deals of this kind is whether existing customers end up subsidising the infrastructure needs of large commercial tenants.

Both parties have gone to some lengths to address that concern publicly.

"Working with our customers, regulators and state leaders, we are making targeted investments that strengthen reliability, support economic development and deliver meaningful benefits to customers – all while keeping energy rates affordable, which aligns perfectly with Meta's Ratepayer Protection Pledge and Entergy's Fair Share Plus pledge," says Phillip May, the President and CEO of Entergy Louisiana.

Rachel Peterson, Meta's Vice President of Data Centres, echoes these sentiments while emphasising the teamwork that has gone into this project thus far.

"We've been working closely with Entergy since early on-site planning to ensure our power needs are met and, importantly, so that Entergy's other consumers aren't paying our costs," she explains.

Beyond the headline savings figure, Meta has committed US$120m including matching funds to Entergy's The Power to Care programme and US$140m for energy efficiency initiatives aimed at vulnerable customers.

The regulatory backdrop

The project will be the first filed under Louisiana's newly adopted Lightning Amendment, a framework developed by the Louisiana Public Service Commission specifically to govern large-scale economic development projects while preserving regulatory oversight and customer protections.

That framework will be closely watched by other states grappling with how to accommodate surging data centre demand without distorting existing energy markets or burdening residential customers.

Economic ambitions

Louisiana Governor Jeff Landry welcomed the announcement, praising both Meta and Entergy for demonstrating that growth in the sector can be achieved while prioritising consumer interests.

“Today, Louisiana once again demonstrates our commitment to capital and job creation,” he said.

“I want to express my gratitude to Mark Zuckerberg, the Meta team, and Entergy for showcasing how growth in this field can be achieved while prioritising consumer interests. Their policy has set a precedent that should become the norm, not the exception.”

Construction activity related to the project is expected to generate thousands of jobs between 2026 and 2031, with permanent roles in engineering, maintenance and support services to follow.

Entergy management is scheduled to discuss the financial implications of the deal on its first-quarter 2026 earnings call on 29 April.