ALEXANDRIA, La. (KALB) - After two years of behind-the-scenes work, it’s no longer a rumor or a talking piece at the dinner table. Governor Jeff Landry officially announced that a new Artificial Intelligence (AI) data center is coming to Boyce, codenamed as the “Delta Forge 1 Data Center.”
“When you think about areas like Central and North Louisiana who have lived in abject poverty because of missed economic opportunities, while we’ve watched our southern neighbors enjoy economic opportunity... it just took some will, some perseverance, and some teamwork, and we’re going to deliver for them, and we’re delivering it for them today.”
Louisiana Governor Jeff Landry (R)
The Governor announced the groundbreaking at England Airpark’s Community Center on Tuesday. The multi-billion dollar project, consisting of two buildings on the nearly 300-acre plot of land near I-49 and South of the Town of Boyce, is slated to bring in 1,000 construction jobs, alongside 200 direct jobs, each paying at $90,000 yearly, and according to estimations from Louisiana Economic Development, another 218 indirect jobs. Applied Digital reports the combined annual payroll of the data center equates to roughly $32.67 Million.
Nearly 372 acres of additional nearby land owned by Applied Digital will remain largely unused, with “future uses for the remaining land” being unconfirmed, per a report by the company.
“We’re not just celebrating an announcement. We celebrate the belief in our people. The belief in our future...and the belief in what is possible when a community comes together around a shared vision.”
Chris Masingill, President & CEO of Louisiana Central
Applied Digital, a digital infrastructure company known for it’s work on data centers, qualified for Louisiana’s state and local tax exemptions created by Act 730 in the 2024 Legislative Session for data center equipment. According to the Act, “Data center equipment” stands for “equipment or software purchased or leased for the processing, storage, retrieval, or communication of data,” including products such as servers or routers.
“As long as we continue to have policies that make corporations want to come to Louisiana, I think the sky is the limit...
Louisiana Governor Jeff Landry (R)
Applied Digital has additionally agreed to a payout of:
- $77 Million to the Rapides Parish Government
- $7.6 Million per year & $206.2 Million Cumulative payment to the Rapides Parish School System
- $575.5 Million to ten unnamed local “Rapides Parish Taxing Bodies” over the company’s 27-year agreement
- $3.3 Million per year & $88.1 Million Cumulative payment to the Rapides Parish Sheriff’s Office
According to a report by the company, Applied Digital is building Delta Forge 1 to be a “long-term” campus under a 15-year initial lease with three five-year renewals.
Cleco is planned to handle the full power load of the facility, which is projected to consume 300 megawatts of electricity, the equivalent of nearly the entire power output of Louisiana’s largest solar farm, Oxbow Solar, spanning 1,800 acres, powering 62,400 households on average.
“Louisiana ranks third among the states with the highest total electricity consumption on a per capita basis."
U.S. Energy Information Administration
When questioned by KALB on whether electricity costs for Cleco customers are expected to rise, the energy company’s CEO, William “Bill” Fontenot, responded, saying rates for residents should not increase. “The answer is no,” Fontenot explained. “You bring in more sales, you bring in more volume... That means you’ve got a broader customer base to spread your costs.”
Applied Digital Director Richard Nottenburg voiced a similar stance with Cleco, saying electricity rates could potentially decrease for residential consumers, citing residential rates lowering in areas around a separate Applied Digital center in North Dakota.
Additionally, according to Applied Digital, the company has pledged to fully pay the costs associated with the power consumption of the campus, as well as the infrastructure necessary for operation. Governor Landry highlighted Delta Forge 1 and other incoming data centers, such as Meta’s largest-ever data center touching down in Northeast Louisiana, as methods to protect consumer affordability by creating ‘financial injections’ for resiliency on the state’s power grid.
“There’s misinformation about raising utility bills. We’re not behind the meter.”
Applied Digital Director Richard Nottenburg
According to Applied Digital, Delta Forge 1 will use a ‘minimal’ amount of water by utilizing a “closed-loop water system” that circumvents the requirement for consistent water consumption. “One of our data centers actually uses as much water as a single-family home,” Nottenburg explained. “It’s a very, very efficient way to cool it.”