Louisiana approves $2.5B data center project with zoning update

Hut 8 has received approval to construct a $2.5 billion artificial intelligence data center in West Feliciana Parish, Louisiana, with plans to create hundreds of permanent jobs and potentially expand to triple its initial size.

Project overview and scope: The development will begin with two 450,000-square-foot buildings on a 611-acre parcel, designed to house advanced data servers and computing infrastructure.

• The first building is scheduled for completion by the end of 2025, with the second building following in 2026
• The project is expected to generate thousands of construction jobs and over 50 permanent positions for network technicians and maintenance staff
• Future expansions could include the construction of a dedicated power plant to support operations
• The facility will be leased to an unnamed tenant who will invest approximately $10 billion in computers and equipment

Strategic location advantages: West Feliciana Parish offers several key benefits that attracted Hut 8 to the region.

• The site sits above the 500-year flood plain, providing natural disaster protection
• Strong fiber optic infrastructure along Interstate 10 ensures robust connectivity
• Proximity to River Bend Station offers access to significant power resources
• The region provides access to a skilled workforce

Power requirements and infrastructure: The facility’s energy demands highlight the massive scale of modern AI computing operations.

• Initial phases will require 300 megawatts of power, equivalent to the annual energy consumption of 54,000 homes
• Future expansions could push power requirements beyond 1,000 megawatts
• The nearby River Bend Station generates 974 megawatts, indicating the significant local power capacity

Company background: Hut 8 brings substantial experience in data center operations to the project.

• The company currently operates 20 Bitcoin mining facilities and data centers across the U.S. and Canada
• Its name honors Alan Turing’s historic work in computer science during World War II
• Hut 8 serves as a developer for technology companies requiring expanded computing infrastructure

Louisiana’s emerging data center hub: This project represents part of a larger trend of major tech investments in Louisiana.

• Meta recently announced plans for a multibillion-dollar data center in north Louisiana
• State officials cite available land and power grid capacity as key attractions for data center developers
• The state views data centers as an ideal blend of industry and technology sector opportunities

Looking ahead: The project’s ambitious scale and potential for expansion suggests a significant long-term impact on Louisiana’s technology infrastructure and economy, though success will largely depend on managing the substantial power requirements and meeting aggressive construction timelines. The development also positions Louisiana as an emerging player in the AI computing landscape, particularly as companies seek locations with abundant land and power resources for their data processing needs.