Nonprofits Seek Probe Into Meta Data Center Financing

Environmental and consumer advocacy groups, including Earthjustice and the Alliance for Affordable Energy, have filed motions with the Louisiana Public Service Commission requesting an investigation into the financing of Meta Platforms Incorporated's $27 billion artificial intelligence data center in Richland Parish. The advocates allege that Meta altered the project's financial structure on the day regulators approved the power plan, shifting majority ownership to the private equity firm Blue Owl Capital.

According to the disclosures, Blue Owl holds an 80% ownership stake in the facility and has borrowed approximately $27.3 billion through bonds. The current arrangement allows Meta to lease the center in four-year terms, which critics argue contradicts the 15-year term previously approved. Earthjustice claims this structure could allow Meta to exit the project quickly, potentially leaving electricity ratepayers to cover stranded costs for the associated power plants and transmission infrastructure.

Entergy, the utility constructing three gas-fired plants to power the facility, denies these claims. The company asserts that Meta's obligations are backed by robust credit protections and guarantees that remain valid regardless of ownership changes. Entergy further claims the agreement secures $650 million in savings for customers. Public Service Commissioners Foster Campbell and Davante Lewis are currently reviewing the requests and seeking further public discussion on transparency and ratepayer impact.