Applied Digital announces $3.6B AI data center in Rapides Parish, Louisiana
Applied Digital is investing $3.6 billion to develop an AI campus, Delta Forge 1, in Rapides Parish, Louisiana. The project was formally announced by state officials and is expected to create 200 direct jobs. The campus will be powered by Cleco and feature a closed-loop cooling system, with initial operations slated for mid-2027.
Applied Digital, a Dallas-based digital infrastructure developer, has officially announced a $3.6 billion investment to construct a large-scale artificial intelligence campus in Rapides Parish, Louisiana. State officials formally unveiled the project, named Delta Forge 1, at a press conference on Tuesday. This development is projected to generate 200 direct new jobs, offering salaries 150% above the state average wage, and will also support over 1,000 construction jobs during its peak.
The Delta Forge 1 campus will initially feature two facilities, encompassing 300 acres, designed to support 300 megawatts of critical IT load for AI training and inference workloads. Local electric utility Cleco will provide power to the campus, which will incorporate a closed-loop cooling system to conserve water by recirculating coolant. Site development for the project commenced in January, with initial operations anticipated to begin in mid-2027.
Louisiana is providing incentives, including a state and local sales and use tax exemption for qualifying data center equipment purchases or leases, to support Applied Digital's investment. Governor Jeff Landry emphasized that global companies are choosing Louisiana due to its readiness with infrastructure, workforce, and leadership to support future technologies. Ralph Hennessy, executive director of the England Airpark, previously indicated that Applied Digital was in discussions with a potential hyperscaler tenant for the facility, though no tenant was named in the recent announcement.