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La. Energy Task Force Chair Gives Cautionary Assessment of Data Centers

Louisiana Senate President Cameron Henry cautions that data centers are no panacea to the myriad issues which plague the state, but also wants to be clear he is not attacking the power companies or the industry, only providing consumers with valuable information to better navigate the issue.

Ahead of the 2026 Regular Louisiana Legislative Session, which gets underway on Monday, March 9, 2026, Senate President Cameron Henry, R-Metairie, is speaking with citizens on some of the pending legislation and issues at hand.
Among the issues topping the agenda for Henry is energy. Specifically, Henry told members of the Baton Rouge Press Club on Monday, March 2, that a legislative task force on energy that he created last year [Senate Resolution No. 195] found that utility customers often end-up ‘footing part of the bill’ when power companies upgrade their plants for data centers.

The Data Center Map estimates that the U.S. has over 4,000 data centers, including operational sites and those under development. A third of U.S. data centers are in just three states: Virginia (643), Texas (395) and California (319).
The Data Center Map estimates that the U.S. has over 4,000 data centers, including operational sites and those under development. A third of U.S. data centers are in just three states: Virginia (643), Texas (395) and California (319).

As the Louisiana Radio Network reports, Henry informed the group it is the utility companies, not the consumers, who usually reap the financial benefits. “When a power company makes an upgrade to something, to the grid, whatever it might be, even to META, they’re allowed to pass those expenses on to the consumers. They’re also allowed to tack up to a 10% return on that investment.”

According to the Pew Research Center, Many states are offering financial incentives and expedited permitting to attract new data centers. They’ve done so in pursuit of the construction jobs, local tax revenue and future business opportunities that data centers can offer.
According to the Pew Research Center, Many states are offering financial incentives and expedited permitting to attract new data centers. They’ve done so in pursuit of the construction jobs, local tax revenue and future business opportunities that data centers can offer.

Henry also said while data centers may create jobs and economic impact, they may also drain resources. Yet Henry was careful to explain that he does not want to appear in any way to attack the power companies or the nascent data center industry in Louisiana.
Instead, Henry said he is only working to inform the public about the decision-making processes, in general. The argument goes that consumers, armed with such knowledge, are more likely to know what initial steps to take to resolve any questions or concerns they may have at that time.

The federal government has identified data center development as a national priority, committing land and funds to support their growth. Supporters see data centers as worthwhile to spur local and national economic growth and ensure national security amid the global AI race.
The federal government has identified data center development as a national priority, committing land and funds to support their growth. Supporters see data centers as worthwhile to spur local and national economic growth and ensure national security amid the global AI race.

For example, in the data center industry it is the Louisiana Public Service Commission (LPSC) which provides the government oversight which citizens can contact for answers to the issues they want addressed. Ultimately, Henry explained that any process to resolve problems is not about turning to government entities, as such, but to the real people who operate those agencies. “When you get everyone in a room together and you discuss what’s possible, what can pass, and what the governor can sign, you come up with something that works.”
This topic hits especially close to home in Shreveport. On Monday, February 23, Amazon announced plans to invest $12 billion to building multiple AI and cloud computing data centers across Caddo and Bossier Parishes. The project is expected to create 540 direct new jobs. Louisiana Economic Development (LED) estimates the project will result in 1,700 additional indirect new job opportunities in the Northwest Region. Amazon officials announced construction would begin “imminently.”

Near the end of 2024 META announced plans to build a four million sq ft facility known as Hyperion in Richland Parish. the project is set on 2,250 acres. Then, near the end of 2025, META purchased another 1,400 acres of land with plans to build a 2GW data center. Its own website stated: CEO Mark Zuckerberg also said last year that Hyperion "could scale up to 5GW over several years."
Near the end of 2024 META announced plans to build a four million sq ft facility known as Hyperion in Richland Parish. the project is set on 2,250 acres. Then, near the end of 2025, META purchased another 1,400 acres of land with plans to build a 2GW data center. Its own website stated: CEO Mark Zuckerberg also said last year that Hyperion "could scale up to 5GW over several years."

Then there is the 3,650-acre megasite Hyperion already under construction in Northeast Louisiana, in Richland Parish by Facebook parent company META. Originally set to cost $10 billion, that estimate has now skyrocketed to $27 billion after the purchase of another 1,400 acres.

Originally from the Pacific Northwest, and a graduate of the University of Washington, Jeff began his on-air broadcasting career 35 years ago in the Black Hills of South Dakota as a general assignment reporter.
Reporter, Louisiana Radio Network