Cleco’s $3.6B data center deal could reshape central Louisiana’s energy landscape
Cleco plans to build a new 756-megawatt natural gas power plant as part of an agreement to supply electricity to Applied Digital's planned $3.6 billion data center in Rapides Parish, Louisiana. The data center could require up to 430 megawatts of power, becoming Cleco Power's largest single load. Applied Digital will cover infrastructure costs, and Cleco anticipates the deal will provide significant financial benefits to existing customers.
Cleco, a utility company, has announced plans for a new 756-megawatt natural gas power plant in central Louisiana. This development is part of a broader agreement to supply power to Applied Digital's planned $3.6 billion data center in Rapides Parish.
The data center is projected to consume up to 430 megawatts, which would represent the largest single load ever served by Cleco Power. Applied Digital has committed to funding all necessary infrastructure to connect the facility to Cleco's grid, including new and upgraded substations and transmission improvements. Additionally, Applied Digital will finance a separate 10-year agreement enabling Cleco to secure an extra 370 megawatts from the Tenaska Frontier Generating Station in Texas.
Cleco states that the new 756-megawatt gas plant is essential regardless of the data center project, citing the retirement of older power plants and the need for reliable generation capacity for all its customers for approximately 30 years. The utility estimates that Applied Digital will contribute nearly $3 billion in non-fuel charges over 15 years, which will help cover generation, transmission, and storm recovery costs, and provide over $700 million in net benefits to existing customers by reducing their share of expenses for the new plant and related infrastructure.