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Brandiary > Startups > Louisiana Hands Meta a Tax Break and Power for Its Biggest Data Center

Louisiana Hands Meta a Tax Break and Power for Its Biggest Data Center

News Room By News Room September 24, 2025 5 Min Read
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The agreement sets out hiring timelines that the company must also hit to receive these tax incentives: Meta can receive the highest property tax exemption as long as it hires the equivalent of 300 “full-time” jobs by 2030, 450 by 2032, 475 by 2033 and 500 by December 31, 2034.

Louisiana’s agreements ask for more than some other states’ tax subsidies. According to Good Jobs First, nearly half of state tax subsidies for data centers don’t require any new jobs to be created. But Miller has concerns that the tax breaks were not necessary at all to entice a company as large as Meta. “While everyone likes to avoid taxes, they’re not going to hire people in Richland [Parish] just because they’re going to get a tax break,” Miller says.

Louisiana had already amended a tax rebate to create an exemption for data centers in 2024 to entice Meta; in its latest iteration, it says data centers can receive a full sales tax exemption for equipment purchases in the state as long as they hire 50 full-time jobs and invest at least $200 million by July 1, 2029. A separate contract viewed by WIRED affirms that this applies to the Richland Parish data center, in addition to the PILOT agreement.

Good Jobs First says that at least 10 states have subsidies for data centers that are worth more than $100 million each, and “have suffered estimated losses of $100 million each in tax revenue for data centers,” according to its data. In total, these states forgo more than $3 billion in taxes annually for data centers. Texas revised the cost of its data center subsidy in 2025 from $130 million to $1 billion. In 2024, a pause on data center subsidies was passed in Georgia but vetoed by governor Brian Kemp.

The Franklin Farms site in Holly Ridge, the area of Richland Parish where Meta’s data center is being built, was purchased by Louisiana specifically for economic development projects. In its ground lease with Meta, Louisiana offered the 1,400-acre plot to the company for $12 million, which the lease says was the cost to the state of acquiring and maintaining the land. The lease also says Meta’s $732,000 a year “rent” is “credit toward the Base Purchase Price,” meaning the company will have paid for the property by a little over 16 years into its 30-year lease.

The price for the potential sale would be slightly higher if Meta does not reach minimum hiring and investment thresholds: As an example, the lease says if Meta only spends $4 billion in the state instead of $5 billion, the property would end up costing it $19 million. Louisiana Economic Development reserves the right to reclaim the property if Meta doesn’t invest at least $3.75 billion and hire the equivalent of 225 “full-time” jobs by 2028. When asked if Meta plans to purchase the property, Clayton said, “We’ll keep you updated on our future plans for this site.”

Meta’s presence has already caused land values to jump. A nearby tract of 4,000 acres of land in Holly Ridge is for sale for $160 million, or $40,000 per acre—more than 4.5 times the price paid by Louisiana for the data center’s site.

But there’s also a concern that Meta could delay or abandon the data center project. The PILOT agreement its subsidiary signed with the state says the company’s timeline will depend on “numerous factors outside of the control of the lessee, such as market orientation and demand, competition, availability of qualified laborers to construct and/or weather conditions.”

“My general fear is that too many data centers are being built,” Miller says. “That means some of the data centers are just going to be abandoned by the owners.”

She says in the scenario that Big Tech cuts back investments in data centers, Meta would not even be able to find another buyer. “Essentially, the state will be stuck with this warehouse full of computers,” Miller says.

Update: 9/22/2025, 12:50 PM EDT: Wired has clarified the subhead to reflect how critics perceive the data center.

Read the full article here

News Room September 24, 2025 September 24, 2025
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