Dealmaking Delivers Results for Louisiana in the Form of Hemisphere’s Largest Data Center

Louisiana, the New Home of Artificial Intelligence 

Last December, Meta announced it had chosen a plot of land in rural northeast Louisiana as the future home of its $10 billion data center, the largest such center in the Western Hemisphere. This is also, by far, the largest economic project in Northern Louisiana’s history. 

The 22,000-acre compound will serve as a hub for AI innovation, powering Meta’s continued dominance over the booming industry. In the process, it’ll also power northern Louisiana’s workforce. The project is expected to create 5,000 jobs during construction, 500 permanent jobs at Meta, and over 1,000 additional jobs through related economic activity.  

Yes, good governance usually begets a strong economy. But good governance doesn’t create that economy through unilateral action. Instead, good government creates an environment in which corporations at the cutting-edge of technology and innovation, like Meta, can thrive. Louisiana, in creating that environment, opens the door for economic prosperity for decades to come.  

A Deal Months in the Making 

Ranked lower than most of its peers on many economic metrics, Louisiana has, in recent years, looked to create a business-friendly environment. Recently, the state has benefited from the strong pro-business leadership of Governor Jeff Landry.  

Landry, just six months after taking office, signed into law a sales tax exemption for data centers built before 2029, which proved vital to securing the data center.  

While few knew the state was negotiating with Meta at the time, it turns out that tax exemption was a must-have to strike a deal with the company. Louisiana’s Secretary of Economic Development, Susan Bourgeois, said. 

“The Meta folks made it clear to us from day one that in order for a project like this to happen in any state, that exemption or rebate — whatever the formula is — has to exist.” 

Building Louisiana’s Future 

Louisiana Economic Development, an arm of government established to cultivate jobs and economic opportunity, couldn’t be happier about the development, and for good reason.  

LED, and others, expect the project to create a ripple effect throughout the region. For one, Meta, as part of the deal, has promised to make every effort to source energy, labor, and materials locally, providing a huge capital influx for local businesses. Additionally, the company plans to parter with local schools to promote STEM education and digital skills.  

Through this deal, Louisiana is leveraging Meta to build the next generation of the state’s skilled workforce. 

Concerns Abated, Benefits Maximized   

One of the primary challenges, or concerns, with data centers is their immense energy usage. On one hand, Meta was concerned with having enough power to house the plant, a prerequisite for the deal met by local energy companies.  

On the flip side, politicians and residents alike have expressed concern with the amount of water and power needed to run these centers. However, Meta will meet their end of the bargain with a promise to match its electricity usage with clean and renewable energy. Additionally, they’ve pledged to restore more water than they consume by investing in water restoration projects across the state.  

What’s the takeaway? 

When large U.S. companies are searching for a place to invest, create, and innovate through a major economic project, states and lawmakers should treat it as a golden opportunity.  

In this case, Governor Landry – and the rest of Louisiana – were ready to meet the moment, pledging large amounts of land, tax breaks, and energy to win the business. In return, they earned thousands of jobs for residents, millions in funding for education and innovation, efforts to restore energy and water consumption in the region and are finally able to turn the page toward a brighter economic future. 

This instance is just another reminder that economies thrive when policymakers and business leaders work together to accomplish big things through daring innovation, mutually beneficial dealmaking, and investments into their collective futures.