Ari Peskoe, director of Harvard University’s Electricity Law Initiative, said tech companies should be required to pay “every penny so the public is not left holding the bag.”
How is this tackled in other states?
Elsewhere, tech companies are not being given such leeway. More than a dozen states have taken steps to protect households and business ratepayers from paying for rising electricity costs tied to energy-hungry data centers.
Pennsylvania’s utilities commission is drafting a model rate structure to insulate customers from rising costs related to data centers. New Jersey’s utilities regulators are studying whether data centers cause “unreasonable” cost increases for other users. Oregon passed legislation this year ordering utilities regulators to develop new, and likely higher, power rates for data centers.
And in June, Texas implemented what it calls a “kill switch” law empowering grid operators to order data centers to reduce their electrical load during emergencies.
Locals have mixed feelings
Some Richland Parish residents fear a boom-and-bust cycle once construction ends. Others expect a boost in school and health care funding. Meta said it plans to invest in 1,500 megawatts of renewable energy in Louisiana and $200 million in water and road infrastructure in Richland Parish.
“We don’t come from a wealthy parish and the money is much needed,” said Trae Banks, who runs a drywall business that has tripled in size since Meta arrived.
In the nearby town of Delhi, Mayor Jesse Washington believes the data center will eventually have a positive impact on his community of 2,600.
But for now, the construction traffic frustrates residents and property prices are skyrocketing as developers try to house thousands of construction workers. More than a dozen low-income families were evicted from a trailer park whose owners are building housing for incoming Meta workers, Washington says.
“We have a lot of concerned people — they’ve put hardship on a lot of people in certain areas here,” the mayor said. “I just want to see people from Delhi benefit from this.”
The Associated Press’ Sophie Bates reported from Holly Ridge, Louisiana, and Jack Brook reported from New Orleans. Brook is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.
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