Meta’s Hyperion data center reaches $50 billion and divides a town.

      Meta’s Hyperion data center in rural Louisiana has surged from an initial cost of $10 billion to over $50 billion in less than two years. In a parish home to 20,000 residents, it has generated immense wealth for some locals while leaving others unable to afford their homes.

      Recently, Meta significantly expanded its AI ambitions. On Monday, the company announced that its Hyperion data center in Richland Parish, Louisiana, will increase in scale to a 5-gigawatt facility costing more than $50 billion. It has become Meta’s largest data center and ranks among the largest AI projects globally.

      The figures tell the tale. When construction started in December 2024, the estimated cost was $10 billion. By October, that figure had risen to $27 billion, according to CNBC, following a partnership with Blue Owl Capital. Currently, it has surpassed $50 billion, marking a fivefold increase in less than two years.

      A community divided

      Richland Parish, with its approximately 20,000 residents, ranks among the poorest areas in Louisiana. A project of this magnitude naturally disrupts the local environment.

      For some, the development has brought significant financial benefits. Meta claims to have engaged local companies for contracts worth more than $1.6 billion and plans to invest over $1 billion in infrastructure such as roads, water, and wastewater systems. Scott Holmes, who operates a local charter-bus business, reported that his fleet expanded from 40 buses to 102. His drivers now earn above $80,000, a substantial amount in a region where the median income is $42,000.

      Conversely, others feel they are facing displacement. With thousands of construction workers flocking to the area, rents have risen and traffic congestion has intensified, as reported by Fortune. Erika James, a 34-year-old mother of two raised in the parish, has been forced to relocate 30 minutes away to a mobile home park. “There is literally a sign outside welcoming Meta workers while local families are left wondering where they’re supposed to go,” she told Fortune. “There is nowhere to go if you can’t pay triple prices.”

      The tax incentives benefiting teachers

      The economic landscape is atypical. In late 2024, Governor Jeff Landry enacted a law exempting data centers established before 2029 from sales tax for 20 years. However, Meta still contributes a 1 percent local sales tax on its purchases.

      On a $50 billion project, that 1 percent adds up significantly. A local ordinance allocates this revenue toward school bonuses. Some teachers in Richland Parish received checks exceeding $50,000 this year, an increase from $10,000, according to Meta. The average salary for a teacher in Louisiana is $56,785.

      The issue lies in timing. The financial windfall is tied to the construction period, and local officials anticipate that it will decrease once the building phase concludes. “Sales tax at that level may be somewhat temporary,” a chamber director told the Wall Street Journal.

      The state is upfront about the bargain. Meta clearly stated that it would not proceed without incentives, according to Louisiana’s economic development chief. One attorney involved in the negotiations was more straightforward: “We’re only providing this to entice them here,” he told the Times-Picayune. “We don’t want to give them a dollar more than is necessary.”

      Who bears the power costs?

      Additionally, there is the issue of electricity supply. To support Hyperion, the utility company Entergy is constructing new gas plants and 240 miles of transmission lines, all funded by Meta. The company claims to cover the full costs of energy and water to ensure residents are not burdened, citing an agreement that it states will save Entergy customers over $2 billion.

      Consumer advocates, however, remain skeptical. Earthjustice urged regulators to investigate Meta’s financing, under which it sold about 80 percent of the data center to a venture-debt firm. They warned that ratepayers might end up subsidizing costs. Regulators did not initiate an investigation in February. This concern has also followed Meta's developments in other locations.

      A national sentiment

      Richland Parish is not an isolated case. Companies like Microsoft, Google, and Amazon are pursuing similar tax incentives, with Amazon alone committing $12 billion to data centers in north-west Louisiana. The land rush is widespread.

      Resistance is equally widespread. A Gallup poll conducted in March revealed that 70 percent of Americans oppose having an AI data center in their vicinity, a higher percentage than those opposed to living near a nuclear facility. In April, Maine became the first state to prohibit large-scale data centers, while Scotland is considering its own moratorium. The costs associated with the AI boom are beginning to emerge, and areas like Richland Parish are still trying to determine who will ultimately bear those expenses.