Meta can keep its data center details private, PSC decides

The vote fell along party lines, with Republicans Jean-Paul Coussan, Mike Francis and Eric Skrmetta reversing the judge’s order and Democrat Davante Lewis in support of it. A second Democrat, Foster Campbell, was absent.

Meta has contracted with Entergy to provide electricity for the data center, starting with three natural gas-powered turbines the utility will build for the facility. Meta has since announced it intends to expand Hyperion, which will require another seven power-generating units. But the finer details of the deal have been shrouded under the secrecy of non-disclosure agreements that state and local officials, including Gov. Jeff Landry, have signed.

Rep. Julia Letlow bought Meta stock after signing an NDA with the company, records show

The Alliance for Affordable Energy, the Union of Concern Scientists, the Sierra Club and other organizations want firm figures from Meta before the Public Service Commission gives a green light to Entergy to build all that power infrastructure. The groups asked PSC Administrative Law Judge Melanie Verzwyvelt to subpoena the Meta records, arguing Entergy has never adequately explained how Meta came up with the power-need calculations the utility included in its applications to the commission to build new turbines for Hyperion. 

After Verzwyvelt approved the subpoena July 10, Meta appealed the ruling to the commission in a last-ditch bid to keep the details under wraps. The company maintains that revealing the information would expose trade secrets.   

Wednesday’s PSC hearing drew several data center opponents who addressed commissioners before the vote, though Skrmetta, the chairman, limited each to 3 minutes and at times engaged in contentious debate with speakers who called for transparency as audience members applauded.

Skrmetta initially wanted to postpone the vote until next month, but Lewis argued to continue as planned. Coussan backed Lewis, saying he wanted to grant Meta’s request without further delay. 

Coussan said general information on Meta’s job projections and electricity demand is publicly available from news reports. The Illuminator has previously cited Meta, Entergy and state officials who have estimated the Hyperion campus will have 1,000 permanent jobs and require 5 gigawatts of power. 

Coussan, who has not signed a nondisclosure agreement with Meta, said more granular details from the company are proprietary and not for public consumption. In a later text message, he derided the subpoenas as being ideologically driven. 

“I think it’s a witch hunt coming from politically motivated parties, a point underscored by all the avowed democratic socialists testifying today in favor of the subpoena,” Coussan wrote. 

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He added that it would set a bad precedent to allow a third party that isn’t directly involved in PSC proceedings to subpoena sensitive information. 

“This would send a chilling effect to businesses across America trying to do business in Louisiana,” he said.

The Alliance for Affordable Energy has expressed concerns that Entergy customers might eventually bear the costs of the additional power generation if Meta backs out of its agreements at some point in the future.   

Another reason for public concern stems from one of the PSC’s closest advisers. Consultant Lane Sisung filed an in-depth analysis in June showing the data center deal, if approved, will cause Entergy Louisiana customer bills to increase $8 to $13 per month on average.

Wednesday’s vote could be the final say on the transparency measure unless the environmental groups can take it up in a different venue, such as through a lawsuit in state court.

“Our attorneys are looking at whether we have to wait until the whole case is complete … or if there are actions that can be taken in the interim,” Alliance executive director Logan Burke said after the hearing. 

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