NEW ORLEANS - Over the past three years, the number of data centers in the U.S. has grown considerably, but with an interesting twist. The growth in numbers has increased at a modest pace of 10-20% while their power capacity has surged by an estimated 30–50% over the last three years particularly as businesses like Amazon, Microsoft, and Google are choosing to consolidate many small sites into fewer, much larger facilities.
Louisiana is no exception. Over the past three years, the state has seen the data center landscape dramatically transformed from a handful of small facilities into an emerging hub for hyperscale, AI-driven campuses.
Meta’s $10 billion AI data center in Richland Parish is the main force behind this growth, both in terms of physical footprint (4 million square feet) and energy consumption. To support its 4-million-square-foot data center, Entergy plans to build three new natural gas power plants that together will generate roughly 2,262 megawatts over a 15-year period.
National trends indicate that data center energy use has more than doubled in recent years. Thanks to attractive tax incentives, competitive energy prices, and the existing infrastructure and workforce, Louisiana is attracting the attention of even more multiple hyperscale projects.
The exponential increase in energy demand means Louisiana will need to develop alternative forms of energy in parallel with its oil and natural gas production. Louisiana isn’t sticking solely with oil and gas but is actively working to diversify the energy mix that powers data centers. Meta has pledged to help add 1,500 megawatts of renewable energy to the grid to offset non-renewable use. It is also actively seeking proposals from nuclear energy developers, aiming to tap into a long-term, stable, low-carbon power source which would become operational in 2030.
One example of this trend towards nuclear power is Oklo Inc., an advanced nuclear power and nuclear fuel recycling company based in California. According to a Business Wire report, Oklo Inc. has signed an M.O.U. with RPower, a leading provider of onsite prime and backup power solutions, to deploy a phased power model for data centers. This model combines immediate energy deployment using RPower natural gas generators with a transition path to clean, reliable energy from Oklo’s Aurora powerhouses, eliminating reliance on diesel generators and supporting scalable, sustainable operations.
“This collaboration aims to ensure that data centers can access reliable energy today while building a clear and practical pathway to clean energy in the future,” said Jacob DeWitte, Co-Founder and CEO of Oklo. “With a growing customer pipeline and a current order book of 14 gigawatts of energy, we are thrilled to work with RPower to address both immediate and long-term energy challenges.”
Large-scale data centers across the U.S. now often exceed 100,000 square feet and have become the industry norm for companies like Amazon, Microsoft, and Google. This means demand for alternatives like nuclear power will only grow over the next few years.
According to Business Wire, Oklo’s phased power model will operate in three stages: first, natural gas will power operations for the initial two years; second, Aurora powerhouses will be added; and finally, these Aurora units will supply most of the energy needed, with RPower natural gas generators shifting to backup and resilience roles providing extra power to the local grid when required.
“Our relationship with Oklo represents a powerful way to bridge today’s energy demands with tomorrow’s clean energy solutions,” said Jamie Smith, COO of RPower. “We are excited to bring this phased model to market, providing valuable and timely energy solutions to our customers while advancing their sustainability goals.”
With Louisiana expected to win more large-scale data center investments over the coming years, arrangements like the one between Oklo and RPower may become the norm as energy consumption outstrips traditional energy production capabilities.
