An environmental law group is urging Louisiana regulators to reexamine the ownership and financing structure of Meta Platforms’ large data center under construction in Richland Parish, warning that it could expose utility customers to added financial risk. Earthjustice has asked the Louisiana Public Service Commission to investigate whether the revised structure weakens safeguards relied upon when regulators approved Entergy Louisiana’s plans to build power plants and transmission lines for the project.
The move comes after Meta revealed that asset manager Blue Owl will fund most of the campus in return for an 80% ownership stake, with Meta holding the remaining 20%. As part of the deal, Blue Owl is expected to raise roughly $27.3 billion through bond financing, while Meta will lease the facility under four-year lease agreements. Earthjustice argues this setup could allow Meta to exit at relatively short intervals, potentially leaving ratepayers responsible for infrastructure costs if electricity demand falls.
Entergy Louisiana has rejected those concerns, saying customers remain protected. “Meta’s obligations under its electric service agreement are supported and backstopped by robust credit protections,” the utility said, including a guarantee that remains in force regardless of ownership or financing changes. “In plain terms, Meta remains obligated to satisfy Laidley’s obligations to Entergy Louisiana regardless of how it may change its ownership structure or finance its business.” Entergy also dismissed claims that it misled regulators as “utterly without merit,” calling the agreement a “significant win” that it says will deliver $650 million in savings to customers over the life of the deal.
