Environmental advocates have been denied their request to examine the financing behind Meta’s massive $27 billion data center project in Louisiana, according to an announcement Wednesday from the legal organization Earthjustice.
The environmental law firm had petitioned the Louisiana Public Service Commission last month, seeking an investigation into how the project’s funding structure might eventually burden everyday utility customers with unfair costs.
The controversy surrounds Meta’s planned data center facility in Richland Parish, Louisiana, which requires the construction of three new natural gas power plants to support its operations.
According to Earthjustice’s petition, Meta modified its financial commitment to the project around the same time state regulators gave approval for the power plants. Under this revised agreement, the tech giant can walk away from the entire project after just four years instead of the original 15-year commitment, while also removing its financial guarantee for the venture.
Environmental lawyers argue that if Meta exits early, the local utility company won’t have enough time to recover the construction costs for the power plants. Those expenses would then be passed along to regular customers – including households and local businesses – through increased utility rates.
“By dismissing this motion, the PSC is giving the green light to more tech companies to use this kind of financial maneuvering to maximize profits while evading public accountability,” said Susan Stevens Miller, senior attorney at Earthjustice.
Officials with the Louisiana utility commission could not be reached for immediate comment on their decision.
