Louisiana Grants Meta Tax Incentives and Authority for Its Largest Data Center

The agreement outlines specific hiring deadlines that the company must adhere to in order to qualify for tax incentives: Meta can obtain the highest property tax exemption if 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 demand more than those in some other states regarding tax subsidies. According to Good Jobs First, nearly half of state tax subsidies provided for data centers do not necessitate the creation of new jobs. However, Miller expresses concern that these tax breaks were not essential to attract a company as large as Meta. “While everyone enjoys avoiding taxes, they are not going to hire people in Richland [Parish] purely because of a tax incentive,” Miller states.

Louisiana had previously modified a tax rebate to establish an exemption for data centers in 2024 in order to attract Meta; the most recent update stipulates that data centers can receive a full sales tax exemption for equipment purchases within the state, provided they hire 50 full-time employees and invest at least $200 million by July 1, 2029. An additional contract reviewed by WIRED confirms that this condition applies to the Richland Parish data center, alongside the PILOT agreement.

According to Good Jobs First, at least 10 states offer subsidies for data centers exceeding $100 million each, with these states having experienced an estimated loss of $100 million each in tax revenue for data centers. In total, these states forfeit over $3 billion in taxes annually for data centers. Texas increased its data center subsidy from $130 million to $1 billion in 2025. In 2024, a temporary halt on data center subsidies was enacted in Georgia but later vetoed by Governor Brian Kemp.

The Franklin Farms site in Holly Ridge, the locale in Richland Parish where Meta’s data center is under construction, was acquired by Louisiana explicitly for economic development. In its ground lease with Meta, Louisiana provided the 1,400-acre parcel to the company for $12 million, as noted in the lease, which reflects the cost to the state for acquiring and maintaining the land. The lease also indicates that Meta’s annual “rent” of $732,000 contributes as “credit toward the Base Purchase Price,” signifying that the company will have effectively purchased the property a little over 16 years into its 30-year lease.

The sale price could increase slightly if Meta fails to meet the minimum hiring and investment criteria: for instance, the lease stipulates that if Meta invests only $4 billion in the state instead of the required $5 billion, the property would consequently cost $19 million. Louisiana Economic Development retains the authority to reclaim the property if Meta does not invest at least $3.75 billion and hire the equivalent of 225 “full-time” jobs by 2028. When inquired about Meta’s plans to buy the property, Clayton commented, “We’ll keep you updated on our future plans for this site.”

Meta’s presence has already resulted in increased land values. A neighboring 4,000-acre tract in Holly Ridge is up for sale at $160 million, or $40,000 per acre—more than 4.5 times the price paid by Louisiana for the data center’s location.

However, there are concerns that Meta might delay or shelve the data center project. The PILOT agreement signed by its subsidiary states that the company’s schedule will rely on “numerous factors outside the control of the lessee, such as market orientation and demand, competition, availability of qualified laborers for construction, and weather conditions.”

“My general concern is that too many data centers are being developed,” Miller expresses. “This could lead to some data centers being abandoned by their owners.”

She notes that if Big Tech reduces investments in data centers, Meta might struggle to find another buyer. “Essentially, the state will be left with a warehouse full of computers,” Miller warns.