Louisiana Commission Rejects Probe Into Meta Data Center Deal

The Louisiana Public Service Commission rejected a request from Earthjustice, the Alliance for Affordable Energy, and the Union of Concerned Scientists to investigate the financing of a $27 billion data center project in Richland Parish. The advocacy groups sought a probe into the Hyperion artificial intelligence data center, alleging that a revised financial structure could leave local utility customers to cover the costs of three new gas-fired power plants if Meta exits the project early.

In October, Meta transferred an 80% share of the facility to Beignet Investor, a company created by Blue Owl Capital, while retaining 20% through Laidley LLC. Opponents described this as "Frankenstein financing," arguing that the arrangement allows Meta to abandon the project in four years instead of 15 and removes critical financial guarantees. They claimed the deal effectively makes Meta a tenant and transfers majority ownership to a separate entity to maximize profits and evade accountability.

Entergy Louisiana dismissed these claims as baseless conjecture. Larry Hand, vice president of regulatory and public affairs at Entergy, asserted that an unconditional and irrevocable guarantee from Meta protects ratepayers. The commission declined to intervene, citing a staff recommendation that no evidence warranted a probe, though Commissioner Davante Lewis noted that future investigations remain possible if new information emerges.