Consumer advocacy organizations are raising serious concerns after the Louisiana Public Service Commission (PSC) declined to investigate a complex financing arrangement tied to Meta’s $27 billion data center project in Richland Parish.
According to a press release issued this week, Earthjustice, the Alliance for Affordable Energy, and the Union of Concerned Scientists had requested that the PSC examine what they describe as a “risky” financial restructuring involving Meta and Blue Owl Capital.
Here’s the concern:
Originally, the PSC approved Entergy Louisiana’s plan to build three new gas plants and related transmission infrastructure to power Meta’s data center. That approval was based on financial assurances that were intended to protect ratepayers from long-term risk.
However, on the same day that approval was granted in August 2025, Meta reportedly restructured the deal. Through a joint venture with Blue Owl Capital, Meta reduced its ownership stake in the data center’s holding company to 20%. The new entity borrowed $27 billion to finance the project.
Consumer groups argue this restructuring allows Meta to walk away from the project after just four years under its lease agreement, while the gas plants being built to power the facility are designed to operate for 30 years.
If the data center closes early, advocates warn that Louisiana ratepayers could be left responsible for the remaining costs of the fossil-fuel infrastructure. In addition, more than half a billion dollars in transmission costs tied to the project will reportedly be spread across Entergy customers once construction is complete.
The motion filed in January asked the PSC to conduct a prudence review and investigate whether Entergy was aware of the financial restructuring prior to the August vote. The Commission declined to take up the request.
Consumer groups say the decision denies the public an opportunity to fully examine how this financing structure could impact household utility bills. They argue regulators have a responsibility to reassess projects when major financial terms change.
Supporters of the project, meanwhile, have pointed to economic growth, construction jobs, and tax revenue associated with the data center buildout.
The broader question now facing Louisiana residents is this:
Who ultimately bears the long-term financial risk if the structure of the deal changes?
As this project moves forward, transparency and accountability remain at the center of the debate.
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