Briefing 02/20/2025
This week's roundup: Indiana activists call for a moratorium on hyperscale data centers amid fossil fuel and consumer cost concerns. In Louisiana, environmental groups challenge Entergy’s plan to power Meta’s $10B AI center with natural gas. In Georgia, a commissioner in Newton County is threatening to derail a $5B data center project.
Indiana Activists Call for Pause on New Hyperscale Data Centers
Clean energy and consumer advocates in Indiana, including Citizens Action Coalition’s program director Ben Inskeep and Just Transition Northwest Indiana’s executive director Ashley Williams, are urging a moratorium on new hyperscale data centers. They want a pause until the state can fully assess the facilities’ impact on the electric grid and utility bills.
Projects in the area
In Indiana, hyperscalers currently have major data center projects under development that could be impacted by this moratorium:
AWS Razor5 435 MW.
Google Indiana Project Zodiac 270 MW.
Meta Lebanon 406 MW.
Microsoft La Porte 68.2 MW.
Why it matters:
Fossil Fuels: Activists complain that the rapid expansion of data centers is driving increased demand for fossil fuel–based power, potentially undermining the clean energy pledges of tech giants.
Tax Incentives: Activists target incentives like tax breaks and exemptions, arguing that they may shift hidden costs to local consumers and necessitate costly grid upgrades.
Bigger picture:
Hyperscalers have taken a strong interest in Indiana, but the state has become a hotspot for anti-data center activism. The Citizens Action Coalition has played a significant role in shaping the narrative about data center power consumption and is now leading statewide opposition.
Plan to Power Meta's Massive Louisiana Data Center Challenged
Two environmental and consumer advocacy groups, the Alliance for Affordable Energy and the Union of Concerned Scientists, are challenging Entergy’s plan to build three gas power plants to supply Meta’s $10 billion AI data center in Louisiana. The groups argue that Entergy did not follow the standard process to ensure the gas plants are the most cost-effective or sustainable option. They are urging state regulators to deny the request until an open market review is conducted.
Why it matters:
Regulatory Hurdles: If regulators side with advocacy groups, it could delay the project and set a precedent requiring more stringent energy sourcing for future AI-driven data centers.
Energy Infrastructure & Costs: Entergy’s plan would account for up to 30% of Louisiana’s power supply, and any changes could impact long-term energy costs and grid stability for data centers and other industries.
Bottom line:
The challenge to Entergy’s gas plant proposal highlights the growing scrutiny over how AI data centers secure their massive energy needs. If regulators require a more competitive procurement process, it could influence how future data center projects negotiate power deals, particularly in regions with high renewable energy expectations.
Newton County in Georgia Commissioner Opposes $5 Billion Data Center Project
Newton County (Georgia) Commissioner LeAnne Long publicly opposed a proposed $5 billion data center project —from an undisclosed developer— citing concerns over its impact on residential communities, infrastructure, and utility demands.
The project, planned for a 317-acre site in East Newton, requires rezoning and changes to the county’s Future Land Use Map. Long argued that the area lacks the necessary infrastructure to support the data center and that the expected $2.5 million in annual tax revenue does not justify the disruption to the community.
Why it matters:
Infrastructure and Energy Constraints: Georgia Power has stated that the required infrastructure to support the data center is not in place and won’t be for years, reflecting broader concerns about the strain data centers place on energy grids.
Regulatory Pushback: Georgia’s Public Service Commission recently restricted utilities from passing electricity costs to residential and small-business customers, and the state Senate is considering similar legislation. These moves could increase operating costs for data centers.
Bottom line:
Georgia has been experiencing opposition to data centers, especially in Atlanta. The pushback in Reno shows a broader state-level trend with increasing opposition to data centers.
Links
Trump’s Sons Invest In AI Data Centers After He Touts Billions In Industry Expansion
House passes measure to bolster nuclear, retain coal for AI data centers on utility customer dime
https://www.wfyi.org/news/articles/house-passes-measure-to-bolster-nuclear-retain-coal-for-ai-data-centers-on-utility-customer-dime
Indiana regulators approve ‘large load’ interconnection rules
https://www.utilitydive.com/news/indiana-iurc-large-load-interconnection-data-center-aep-amazon-google/740452/
DeepSeek called a net positive for data centers despite overcapacity worries
https://www.utilitydive.com/news/deepseek-called-a-net-positive-for-data-centers-despite-overcapacity-worrie/740635/
Join the Data Center Watch Briefing and stay ahead of growing political risks for data centers.