Meta and Entergy Data Centre Deal to Save Locals $2.65bn

Entergy Louisiana and Meta have expanded an agreement to supply power to a hyperscale data centre in Richland Parish, placing data centre demand at the centre of energy planning. The updated deal delivers around US$2.65bn in customer savings over 20 years, with US$2bn tied to the latest agreement and US$650m linked to an earlier arrangement.

The structure of the agreement places the cost of new infrastructure on Meta, a key issue as hyperscale data centres require increasing levels of electricity. The approach aims to prevent existing customers from absorbing the cost of expanding capacity to support digital infrastructure.

Building power for hyperscale demand

The project will have the potential to scale to five gigawatts, placing it among the largest single power consumers in the US. 

To meet this demand, Entergy Louisiana plans to construct seven natural gas-fuelled combined-cycle power plants, with a combined capacity of more than 5,200 megawatts . Combined-cycle plants generate electricity by using both gas and steam turbines, improving efficiency. The design also includes provisions for carbon capture and hydrogen co-firing, which allows hydrogen to be blended with natural gas to reduce emissions.

Transmission infrastructure forms another part of the plan. Entergy plans to build around 240 miles of 500kV transmission lines linking South Louisiana to North Louisiana and Arkansas. High-voltage transmission lines such as these move large amounts of electricity over long distances, which is essential for balancing supply and demand across regions.

Battery storage across three sites and nuclear upgrades add further resilience to the partnership. Meta has also committed to supporting up to 2,500 megawatts of new renewable energy and signed a memorandum of understanding to explore nuclear development, though this remains under review.

Protecting customers in energy expansion

As data centre growth places pressure on grids, the question of who pays for infrastructure remains central. 

Entergy and Meta present the agreement as a model that shields existing customers from additional costs.

“Working with our customers, regulators and state leaders, we are making targeted investments that strengthen reliability, support economic development and deliver meaningful benefits to customers – all while keeping energy rates affordable, which aligns perfectly with Meta's Ratepayer Protection Pledge and Entergy's Fair Share Plus pledge,” says Phillip May , President and CEO of Entergy Louisiana.

Meta has allocated US$120m, including matching funds, to Entergy's The Power to Care programme, alongside US$140m for energy efficiency initiatives aimed at vulnerable customers. These measures sit alongside the broader infrastructure investment, linking data centre expansion with community-focused energy support.

Rachel Peterson , Meta's Vice President of Data Centres, sets out how the collaboration develops from early planning stages.

“We've been working closely with Entergy since early on-site planning to ensure our power needs are met and, importantly, so that Entergy's other consumers aren't paying our costs,” she explains.

Regulation and economic impact

The project operates under Louisiana's Lightning Amendment, a regulatory framework introduced by the Louisiana Public Service Commission. The amendment governs large-scale developments such as hyperscale data centres, while maintaining oversight and customer protections. As more regions respond to rising demand for digital infrastructure, frameworks like this are attracting attention from regulators balancing growth with affordability.

Louisiana Governor Jeff Landry positions the agreement within a broader economic strategy.

“Today, Louisiana once again demonstrates our commitment to capital and job creation,” he says.

“I want to express my gratitude to Mark Zuckerberg, the Meta team and Entergy for showcasing how growth in this field can be achieved while prioritising consumer interests. Their policy has set a precedent that should become the norm, not the exception.”

Construction linked to the project will run from 2026 to 2031 and generate thousands of jobs, with longer-term roles in engineering, maintenance and support services tied to the operation of the data centre and its energy infrastructure.

Entergy plans to discuss the financial impact of the agreement during its first-quarter 2026 earnings call on 29 April, where further details on investment and returns are expected to emerge.