EEIDD approves PILOT terms for $7.2B Applied Digital data center prospect in Rapides Parish

The England Economic and Industrial Development District (EEIDD) has approved the terms of a Payment in Lieu of Taxes (PILOT) agreement for a potential $7.2 billion data center project by Applied Digital in Rapides Parish, Louisiana. This cooperative endeavor agreement (CEA) outlines a 25-year payment plan to local taxing authorities, including the Rapides Parish School Board and Sheriff Mining Office, totaling $574.9 million. Initial payments of $13.8 million annually are guaranteed for the first three years during construction, followed by depreciating payments starting at $24 million annually once the data center is operational. Louisiana Central CEO Chris Masingill stated that this project would be the largest investment in the region's history, creating approximately 200 full-time jobs with an estimated minimum salary of $90,000-$93,000. Special legal counsel Michael Busada detailed the financial specifics. Despite the economic projections, community members and activists have voiced concerns. Erin Tracy raised fears about potential environmental impacts, suggesting the economic benefits might not outweigh the risks. The project's significant electricity demand is a major point of contention, especially after Entergy's request to the Louisiana Public Service Commission to approve plans for seven new gas power plants by 2026, partly to support such large-scale developments. Cleco is also reportedly involved in the logistics. Regarding water usage, Masingill stated that the data center plans to use a closed-loop water system, which he likened to the equivalent consumption of two households. While the PILOT term sheet is approved, the project is not a 'done deal,' according to Masingill. The next steps involve state certification of the proposal before the EEIDD can vote on the final CEA, which is expected by the end of 2026.