Source: Reuters
Reviewing how large tech projects are financed matters for local utility costs and consumer power rates.
This case could influence scrutiny of future corporate infrastructure deals.(BizTrendWire Insight)
U.S. environmental law group Earthjustice has formally asked Louisiana utility regulators to investigate how Meta’s planned $27 billion data center project is being financed.
The data center, planned in Richland Parish, would be Meta’s largest to date and is expected to draw more than 2 gigawatts of power.
Earthjustice told the Louisiana Public Service Commission that the financing deal could shift the cost of new gas power plants and transmission lines to local residents and businesses if Meta exits the project early.
The utility financing plan was originally supported by Meta.
However, a revised agreement with partner Blue Owl Capital created a new entity, Beignet Investors, to own the facility.
Under the structure, Meta leases the data center.
The company can end the lease after four years instead of 15.
Earthjustice said that could leave utility customers to cover facility costs if Meta withdraws early.
This is the first time Earthjustice has petitioned a utility regulator over data center financing in the United States.
Meta and Blue Owl had not responded to the request as of the filing.
