Tech companies ‘failed’ in communicating data center benefits, Louisiana regulator says

Louisiana Public Service Commissioner JP Coussan criticized tech companies for their poor communication regarding the benefits of the artificial intelligence data center boom for Americans. Speaking at the Tulane Future of Energy Forum, Coussan noted that companies like Meta are building large facilities in the state, but are playing 'catch up' in explaining their positive impact.

The panel, which included an Entergy executive and academics, focused on preventing residents from bearing the cost of the extensive electric infrastructure buildout required by data centers. Coussan defended the use of nondisclosure agreements by the state to attract such companies, despite voter unease, arguing they are necessary for economic development in Louisiana.

Joshua Hodge of the MIT Center for Energy and Environmental Policy Research presented findings that electricity rates increased in counties with new data center entrants from 2010 to 2024. He suggested regulators should compel data centers to deploy more flexible power demand and enhance grid efficiency. Entergy executive Larry Hand and Coussan expressed confidence that deals, such as the one with Meta for its Hyperion data center in Richland Parish, where Meta is funding new power plants, will ultimately benefit customers. A proposed Entergy acquisition of a power plant in Texas was put on hold after a PSC consultant found it would subsidize Meta's data center for residential customers.