The hearing was part of Entergy's request to the state's Public Service Commission to allow it to build three new natural gas-fired power plants for the project at a cost of over $3 billion. The environmental and consumer advocacy groups have challenged aspects of the application, with Tuesday's hearing focusing on whether Meta should be included as one of the applicants in addition to Entergy.
Without direct participation from Meta, the nonprofits say key information is missing from Entergy's proposal. Entergy and a lawyer for the PSC say granting the advocacy groups' request could set a bad precedent and harm future economic development. They argued that state law does not require Meta or its subsidiary to be a party in the case.
Under PSC procedures, administrative law judge Melanie Verzwyvelt heard arguments in Baton Rouge from the groups and Entergy.
"This is a new ballgame," said Paul Arbaje, an energy analyst with the Union of Concerned Scientists, one of the advocacy groups. "I don't quite buy that (Meta) can sit this one out and not have to answer tough questions."
Susan Miller, a lawyer representing the advocacy groups, said information that only Meta and its subsidiary could provide is needed to shed light on how the power plants fueling the data center will affect ratepayers. These missing details are "keystones of the application," Miller said.
"The (advocacy groups) have a number of questions that they need to have satisfied in order to be able to argue that or support that the application is in the public interest, and without that information, they cannot make their case," Miller said.
But Skylar Rosenbloom, a lawyer representing Entergy, called some of the advocates' requests "extreme and draconian." Dana Shelton, the PSC lawyer, said the move could have a chilling effect on future economic development.
"It could likely say to prospective customers, such as another Meta, 'Don't come here to do business,'" Shelton said.
Meta did not respond to requests for comment.
Game-changing project?
While much of the hearing focused on technical procedural law, Verzwyvelt's decision could have major consequences for a project touted as a change-making win for Louisiana.
In December, Gov. Jeff Landry announced the deal in Richland Parish, where the four million square foot data center will be located, after months of behind-the-scenes negotiations. The data center will be used to train AI models and advance the skyrocketing technology.
But it comes at a steep cost when it comes to power. The amount of new power generation could account for up to 30 percent of Louisiana's electricity, state officials have said.
Meta has committed to paying the full annual revenue for the planned generators for 15 years, though the advocacy groups have questioned whether there could be a long-term impact on ratepayers.
Entergy's application for the gas plants relies on "hearsay statements," the Alliance for Affordable Energy and the Union of Concerned Scientists allege. They point to a number of instances where Entergy representatives have said they did not have the necessary information in response to questions from the advocacy groups.
For instance, the Alliance for Affordable Energy requested analysis or documentation supporting Entergy's claim that the data center will provide 300 to 500 new jobs. Entergy responded that it does not have any documents and linked to a Louisiana Economic Development press release with the statistics, according to the legal filings.
The utility offered similar responses to questions about Meta's need for a specific amount of power, the tech company's sustainability commitments for the data center, and the company's "urgent" need for power. While Entergy is asking the commission to approve the three power plants, the application stresses that the plants will be set up for clean energy production in the future. Entergy directed questions from the advocacy groups about Meta's sustainability goals to the company's sustainability report.
Meta representatives have said that the data center's power use will be fully matched with clean and renewable energy, and that its energy consumption will be disclosed once it goes online.
Verzwyvelt asked the three lawyers presenting their cases whether there were other ways that the advocacy groups could obtain the information they were seeking. Shelton, representing the PSC staff, said the groups have other ways of finding out this information, such as depositions and subpoenas. But Miller said the groups have exhausted all means of discovery, because Entergy has said it doesn't have the information and "we've taken them at their word."
"If Meta is not in the proceeding, then we can't depose them," said Logan Burke, the executive director of the Alliance for Affordable Energy.
Last month, the advocacy groups challenged another part of Entergy's application to power the data center, arguing that the utility didn't sufficiently show that the three gas plants are the most cost-effective generation option. Verzwyvelt deferred that motion until further hearings set for later this year.
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