Entergy Seeks Approval to Buy Texas Plant for Meta Data Center

Entergy Louisiana is seeking approval from the Louisiana Public Service Commission to purchase the Cottonwood gas plant in Texas. The utility company argues the acquisition is necessary to address a power gap created by the expansion of Meta's Hyperion data center in Richland Parish.

While Meta Platforms Incorporated is funding 10 dedicated natural gas plants via a 15-to-20-year agreement, Entergy claims the Cottonwood purchase is required for the general system. The move could increase average residential bills by $8 to $13 per month. The Alliance for Affordable Energy has warned that the data center's electricity demand may drive up wholesale market costs for all consumers.

In response to growing industrial energy needs, Governor Jeff Landry recently issued an executive order establishing a Ratepayer and Community Protection Framework for future data center incentives, though the order does not impact current filings. The Louisiana Public Service Commission is scheduled to vote on the Cottonwood purchase this fall and will review a separate seven-plant application in December.