Louisiana Tightens Data Center Tax Exemption Requirements, Renames Facilities 'Digital Factories'
Louisiana Gov. Jeff Landry’s administration announced new requirements for data center developers seeking the state’s sales tax exemption and said the facilities will be called “digital factories.” The invitation-only program requires developers to attest to benefits involving grid reliability, ratepayer protection, natural resources, jobs and community investment.
Louisiana Economic Development announced a new invitation-only framework for the state’s Data Center Sales and Use Tax Exemption. Developers must submit attestations covering grid reliability, protection of ratepayers, workforce and community investment, local tax contributions, natural-resource use, innovation and transparency. The law also requires qualifying projects to create at least 50 permanent jobs and invest at least $200 million in Louisiana between 2024 and 2029.
The framework was developed under an executive order from Gov. Jeff Landry and will be reviewed by state energy, environmental and utility agencies, along with a project’s proposed power provider. The policy follows concerns that Meta’s Hyperion data center campus in Richland Parish could raise electricity costs, while Entergy’s proposed purchase of a Texas power plant tied to the project remains on hold. Landry has defended data center development, but Public Service Commissioner Davante Lewis called the announcement a public-relations stunt and Commissioner Jean-Paul Coussan criticized developers’ communication with the public.