Data Center Power in Louisiana

Entergy just posted the kind of quarter utilities dream about, and data centers are part of the reason. The harder question for Louisiana sits six weeks away: whether the state's utility regulators will sign off on seven new gas plants built largely for one Meta campus in Richland Parish, and who pays if that bet goes wrong.

The quarter

On Nov. 2, Entergy reported third-quarter 2026 earnings of $940 million, or $1.98 per share, up from $694 million, or $1.53 per share, a year earlier. The company narrowed its 2026 adjusted earnings guidance to $4.35 to $4.45 per share and raised its quarterly dividend 6% to 68 cents. Entergy, "Entergy reports third quarter 2026 financial results" (Nov. 2, 2026)

The details show where the growth is coming from. Weather-adjusted retail sales rose 4.5% for the quarter, and industrial sales grew 4.9%, "driven by higher sales to data center and primary metals customers." Residential sales grew 6.1% and commercial sales 1.9%. PR Newswire, "Entergy reports third quarter 2026 financial results" (Nov. 2, 2026)

One caveat before anyone credits AI for the whole jump: Entergy estimates weather added $116 million to the quarter's earnings, compared with $28 million in the same quarter of 2025. Higher retail sales volume "including the effects of weather" led the company's list of reasons the utility business earned more. Entergy, "Entergy reports third quarter 2026 financial results" (Nov. 2, 2026)

The Louisiana line items

Two items in the release matter most here. The Louisiana Public Service Commission approved Entergy Louisiana's $1.2 billion Babel to Webre transmission project, and Entergy Louisiana reached a settlement with PSC staff in its Evest filing. Entergy, "Entergy reports third quarter 2026 financial results" (Nov. 2, 2026)

Babel to Webre is a 147-mile, 500-kilovolt line pitched as a statewide reliability project to reduce congestion and load-shed events, including in a load pocket that contributed to a New Orleans load shed in May 2025. Construction is scheduled to begin in 2027, with commercial operation targeted for August 2029. The initial residential impact was estimated at $3.74 per 1,000 kWh, with projected offsets tied to industrial sales and transmission-use revenue. Powering Louisiana, "LPSC Approves New Rules for Intervenor Participation; Babel to Weber Transmission Also Approved"

Evest is the bigger story. It is the name in Entergy filings for the expansion next to Meta's existing campus in Richland Parish. American Press, "Two hearings stand between Meta and its power buildout" (Sept. 30, 2026) In its March 25 application, Entergy Louisiana described Evest LLC as a customer seeking to locate a large hyperscale data center in Richland Parish, adjacent to the facility being developed by Laidley, LLC. Louisiana Public Service Commission, Order No. U-37882 (May 14, 2026)

What Evest would build

Entergy says its existing supply, including infrastructure already approved for Meta's original development, is not enough for the new load. It proposes seven combined-cycle natural gas units, four near the Richland Parish data center and three near the Big Cajun generating site in Pointe Coupee Parish, plus three battery-storage projects, a new interconnection substation and more than 250 miles of new 500-kV and 230-kV transmission lines. That comes on top of the three gas units and roughly 60-mile transmission line the PSC approved in August 2025 for the original Meta project, known as Project Laidley. American Press, "Two hearings stand between Meta and its power buildout" (Sept. 30, 2026)

At the evidentiary hearing that opened in October, Entergy's Phillip May disclosed for the first time how much power Meta will use: 4,500 megawatts, roughly four times what the city of New Orleans uses. Entergy had closely guarded that figure over objections from opponents. The expansion would bring the cost of Meta's data center to $50 billion. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

"We are in a power-first world where speed to power is what will drive who wins economic opportunity for their communities," May said at the hearing. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

The ratepayer question

The fight is over risk, not megawatts. The staff settlement lets Entergy skip the bid process normally required to show it is choosing the lowest-cost option. Three of the plants would be depreciated over 32 years, which means customers could be on the hook for several billion dollars if Meta leaves after its 20-year contract. Entergy argues it would still need those plants because of retirements in coming decades. The Alliance for Affordable Energy, the Sierra Club and the Union of Concerned Scientists have argued against the settlement. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

When Susan Miller, an attorney for the Alliance and the Union of Concerned Scientists, asked whether Entergy had looked into arguments that data centers are being overbuilt, May answered: "I don't know that we have exactly looked into that," adding that Meta earns revenue from sources unrelated to AI. He has argued Meta's contract protects ratepayers by requiring it to pay for its power even if it leaves early. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

Entergy also says Meta's payments under its electric service agreement will bring in more revenue than the annual cost of the new assets, and that the plants would serve all customers as system resources rather than Meta alone. American Press, "Two hearings stand between Meta and its power buildout" (Sept. 30, 2026)

Where the governor's framework fits

The state's new tax-break rules touch the same nerve. Gov. Jeff Landry's new framework for the Data Center Sales and Use Tax Exemption requires companies to show commitment to preventing increased costs for ratepayers and strengthening grid reliability, and makes the exemption invitation-only. Critics say it is short on specifics, and Public Service Commissioner Davante Lewis has called for a moratorium until the state sets rules on where data centers can go. WBRZ, "Louisiana adds stipulations to data center tax breaks, but opponents say specifics are needed" (Nov. 2, 2026)

The money involved is still growing. Data center developers have claimed $39 million in sales tax rebates so far under the program, according to Louisiana Department of Revenue data obtained through a public records request, and that number is expected to grow into the billions. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

What to watch: Dec. 16

The decision belongs to the five elected commissioners. In a 4-1 vote, with Lewis opposed, the PSC directed its hearings division to set a schedule for considering Entergy's Evest application at the Dec. 16, 2026 Business and Executive Session. The division compiles the evidentiary record without a formal recommendation from the presiding judge, and the commission decides the case de novo. Entergy had asked for a November vote. Louisiana Public Service Commission, Order No. U-37882 (May 14, 2026) Four of the five commissioners have previously voted to support Entergy's plans for Meta's data center. The Times-Picayune | The Advocate, "Louisiana hearing starts on Entergy's plans for data center" (Oct. 8, 2026)

Wall Street saw a utility growing on data center demand this morning. In Baton Rouge next month, the question is whether Louisiana households are protected if that demand doesn't last as long as the power plants do.

Section index

Entergy's data center quarter meets Louisiana's December power test