---
title: "Meta will take 4,500 megawatts from Entergy, whose CEO admits it hasn't studied the downside"
description: "At a hearing that opened October 7, Entergy's chief executive put the first official number on Meta's Louisiana draw, 4,500 megawatts, roughly four times New Orleans' use. An elected commission that is four-fifths in favor votes on the seven-plant settlement later this year; Entergy reports on November 2."
publisher: "The Inference"
section: "Power"
published: 2026-10-08T13:05:57.260Z
modified: 2026-10-08T13:05:57.260Z
canonical: https://theinference.org/article/meta-will-take-4-500-megawatts-from-entergy-whose-ceo-admits-it-hasn-t-studied-the-downside
language: en
keywords: "Meta, Entergy, Data Centers, Energy, Louisiana, Utilities"
---

# Meta will take 4,500 megawatts from Entergy, whose CEO admits it hasn't studied the downside

> At a hearing that opened October 7, Entergy's chief executive put the first official number on Meta's Louisiana draw, 4,500 megawatts, roughly four times New Orleans' use. An elected commission that is four-fifths in favor votes on the seven-plant settlement later this year; Entergy reports on November 2.

## The charge: 4,500 megawatts, and no bids

Opening arguments began October 7 before chief administrative law judge Melanie Verzwyvelt on a settlement that lets [Entergy](https://theinference.org/markets/companies/entergy) [skip the competitive-bid process normally required to prove it picked the lowest-cost option](https://www.nola.com/news/entergy-meta-public-service-commission-louisiana/article_5fe46cdb-7c36-46dd-93f7-3326410e7009.html) [1].

What rides on it: seven gas plants across Richland and Pointe Coupee parishes, three battery systems, solar farms and more than 250 miles of transmission [1][2]. Testifying, CEO Phillip May put the first official number on [Meta](https://theinference.org/markets/companies/meta)'s draw, 4,500 megawatts, roughly four times what the city of New Orleans uses [1]. "We are in a power-first world," he said, where "speed to power" decides who wins [1]. [Meta itself is not on the witness list](https://theinference.org/article/louisiana-puts-meta-s-gigawatt-on-trial-and-meta-won-t-take-the-stand) [2].

## The receipts: a 20-year contract on 32-year plants

The expansion, Hyperion, lifts Meta's Richland Parish campus past $50 billion, planned at 5 gigawatts of compute by around 2032 [1][3]. Ten dedicated gas plants would total about 7.5 gigawatts, more than 30 percent of Louisiana's existing grid [3].

Meta pays for 20 years; three of the plants depreciate over 32 [1]. That gap is the whole case, because if Meta walks at year 20, customers carry several billion dollars in undepreciated cost [1]. [Entergy](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000065984)'s own spending already shows the wager, with quarterly capex up 38 percent year over year [4].

*Chart: **Quarterly capex has more than doubled in three years as the Meta buildout ramps** Column chart of Entergy's quarterly capital spending from Q3 2023 to Q2 2026, rising from $1.13B to $2.83B*

*Quarterly capital spending, US$ billions, from Entergy's SEC filings, Q3 2023 through Q2 2026; annotation marks the commission's August 2025 approval of the original Meta development. [4][2]*

*Chart: **Capex has outrun operating cash flow in nine of the last twelve quarters** Line chart of Entergy's quarterly operating cash flow and capital spending from Q3 2023 to Q2 2026, with capital spending climbing past operating cash flow as the Meta buildout ramps*

*Operating cash flow and capital spending, US$ billions, from Entergy's SEC filings, Q3 2023 through Q2 2026. Capex has exceeded operating cash flow in nine of the twelve quarters, the funding gap the September equity raise went toward. [4]*

## The admission, on the record

Susan Miller, an attorney for the Alliance for Affordable Energy and the Union of Concerned Scientists, asked May whether Entergy had studied the argument that [data centers are "being overbuilt" and may never be profitable](https://theinference.org/article/north-carolina-kills-duke-s-584m-gas-plant-over-ai-demand-it-can-t-verify) [1]. "I don't know that we have exactly looked into that," he answered [1]. His defense stands on the contract: Meta pays for its power even if it leaves early, and the new plants serve the whole system, not one campus [1][2].

## The ground war: expropriation and a $10.60 claim

On the ground, Entergy says [70 percent of affected landowners have signed survey agreements](https://www.kalb.com/2026/10/03/louisiana-landowners-oppose-transmission-line-meant-support-metas-data-center-entergy-attempts-quell-concerns/), and that no Louisiana customer will pay for the West Fork Creek line during the contract's 20 years [5]. The Alliance's Jackson Voss puts the uncovered share at 40 to 50 percent if Meta leaves [5].

The question is electoral next door: Mississippi Senate candidate Scott Colom campaigns on a ["$10.60 a month data center bailout," about $127 a year](https://www.enterprise-journal.com/colom-tries-capitalize-anti-data-center-sentiment-entergy-mississippi-says-customers-are-6ac69208ec59b), while Entergy Mississippi says data-center revenue prevented a $4.87 monthly increase in July [6].

## The verdict watch: a 27.5x multiple meets the voters' regulators

Four of five commissioners have already voted for Entergy's Meta plans, with Davante Lewis the skeptic [1]. The judge's report goes to the commission, which votes later this year [1]; Entergy reports third-quarter results on November 2 [7].

The street is positioned for approval: [Evercore](https://theinference.org/markets/companies/evercore) lifted its target to $128 from $121 on October 8, against a $102.80 close and a $122.28 mean, the stock up 11.2 percent this year [7]. At 27.5 times earnings, a third above the industry's 20.3, on a $40 billion four-year capital plan, ETR is priced as if Meta's megawatts convert to regulated rate base on schedule [8]. [A $913 million equity raise on September 2](https://www.ad-hoc-news.de/boerse/news/corporate-news/entergy-corp-stock-gains-on-google-data-center-power-deal-and-fresh/70056436) left guidance of $4.25 to $4.45 intact [9].

No source prices the vote itself. The tell is whether the record forces conditions, a restored bid process or security beyond year 20, rather than a clean yes.

## Takeaway

Entergy is betting seven gas plants and 250 miles of line on a 20-year Meta contract against 32-year plant lives, its chief executive concedes the utility never studied whether AI data centers are overbuilt, and a four-fifths-favorable commission votes on the settlement later this year.

## Sources

1. [nola.com, The Times-Picayune | The Advocate, Entergy makes case for expanding Meta data center in hearing while opponents question costs, 8 October 2026](https://www.nola.com/news/entergy-meta-public-service-commission-louisiana/article_5fe46cdb-7c36-46dd-93f7-3326410e7009.html)
2. [The Center Square, Two hearings stand between Meta and its power buildout, 29 September 2026](https://www.thecentersquare.com/louisiana/article_325368b7-8bed-4488-b729-911f735ad0f6.html)
3. [GCN, A rural Louisiana campus priced at over $50 billion is scaling to 5 gigawatts of AI compute, 20 August 2026](https://gcn.com/rural-louisiana-campus-priced-over-billion/20942/)
4. [Entergy, quarterly figures from its SEC filings, retrieved 8 October 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000065984)
5. [KALB, Louisiana landowners oppose transmission line meant to support Meta's data center, Entergy attempts to quell concerns, 2 October 2026](https://www.kalb.com/2026/10/03/louisiana-landowners-oppose-transmission-line-meant-support-metas-data-center-entergy-attempts-quell-concerns/)
6. [Enterprise-Journal, As Colom tries to capitalize on anti-data center sentiment, Entergy Mississippi says customers are benefitting from data centers, not subsidizing them, 8 October 2026](https://www.enterprise-journal.com/colom-tries-capitalize-anti-data-center-sentiment-entergy-mississippi-says-customers-are-6ac69208ec59b)
7. [MarketScreener, Evercore ISI Adjusts Price Target on Entergy to $128 From $121, 8 October 2026](https://www.marketscreener.com/news/evercore-isi-adjusts-price-target-on-entergy-to-128-from-121-ce785dded088f720)
8. [Yahoo Finance, Simply Wall St, Entergy (ETR) Beat Estimates And Reaffirmed Guidance, Is The Stock Still Cheap?, 29 August 2026](https://finance.yahoo.com/markets/stocks/articles/entergy-etr-beat-estimates-reaffirmed-010708095.html)
9. [AD HOC NEWS, Entergy Corp. stock gains on Google data center power deal and fresh equity raise, 4 September 2026](https://www.ad-hoc-news.de/boerse/news/corporate-news/entergy-corp-stock-gains-on-google-data-center-power-deal-and-fresh/70056436)


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Meta will take 4,500 megawatts from Entergy, whose CEO admits it hasn't studied the downside — The Inference. Canonical: https://theinference.org/article/meta-will-take-4-500-megawatts-from-entergy-whose-ceo-admits-it-hasn-t-studied-the-downside