Gov. Jeff Landry to call data centers ‘digital factories’ as he adds conditions to tax breaks
Louisiana Gov. Jeff Landry announced new conditions for data center developers seeking the state's sales tax exemption, including university partnerships, local revenue and community commitments. The administration will also refer to data centers as "digital factories" and previously required developers to pay for their own power amid concerns about electricity and water impacts.
Louisiana Gov. Jeff Landry announced new eligibility criteria for data center developers seeking the state’s lucrative sales tax exemption. Developers must provide a detailed attestation showing meaningful partnerships with universities, sustainable local revenue and long-term commitments to schools and nonprofits, although the state has not explained how compliance will be evaluated.
The policy shift comes as voter concerns grow over the cost and resource demands of artificial intelligence infrastructure. Louisiana created the incentive in 2024 while pursuing Meta’s Hyperion data center in Richland Parish, and Landry recently appeared at a Hut 8 facility under construction in West Feliciana Parish. The administration also previously ordered developers to cover their own power costs after reporting raised concerns that Entergy’s proposed acquisition of a Texas power plant could increase customer bills because of Meta’s project; Entergy later paused the deal and both companies disputed the findings.