It Takes Three to Tango: AI Leadership and the Infrastructure Behind It
Three major developments have commanded the conversation around tech policy in Louisiana over recent years: massive investments in data centers, a heightened attention to the need for abundant energy, and our national leadership in broadband expansion through the Broadband Equity Access and Deployment Program (BEAD). These developments do not exist in isolation. Together, powerful data center infrastructure, Louisiana’s natural energy resources, and strengthened broadband access contribute to a flourishing digital ecosystem that propels Louisiana into a future of artificial intelligence (AI) leadership.
Major technology companies have chosen Louisiana to host their AI data centers. Meta’s largest data center project to-date is in Richland Parish, an Amazon project spans across Caddo and Bossier Parishes, and a Hut8 data center is in the early stages of development in West Feliciana, to name a few. The price tags attached to these data centers are staggering in their own right, representing historic investments in often overlooked, rural areas of Louisiana. Beyond the inevitable economic boost of such large scale projects, connections to workforce programs, teacher pay raises, scholarships, and strengthened utilities through investment are all part and parcel for projects of this magnitude. Businesses and people across our state have come to rely on the platforms and AI powered by these data centers.
Among the reasons that Louisiana was selected to host these data centers is the state’s capacity for energy production. Louisiana’s top export, natural gas, can supply the energy needed to power the computing operations of data centers. While reliable, affordable energy is the foundation of a successfully operating data center, opportunities exist for Louisiana to continue strengthening its claim to energy abundance. Beyond regulatory reform, the data center computing process is also in a perpetual state of innovation, with developers finding new ways to ensure that the energy used does not place undue strain on the grid of its respective location.
While energy powers the data centers, and the data centers are used to power artificial intelligence, it is the broadband that sends information to the data centers and carries the computed product back to the people and businesses who rely upon it.
When the federal Broadband Equity Access and Deployment (BEAD) program was launched in 2023, the digital divide in Louisiana erred on the side of a chasm. With an estimated 1.7 million people lacking access to broadband, ConnectLA, the state’s broadband office, had their work cut out for them. Today, the approval process for BEAD is long completed and the state is on track to have statewide access to high-speed internet by 2028, as funding continues to fuel construction and deployment. For some, this access will mean the difference between connecting to education or a job. Regular data collection and strong relationships with local governments mean that ConnectLA is able to address issues swiftly when they arise. Internet connectivity in Louisiana is strong and growing stronger.
Increased access to broadband allows Louisianans everywhere, from the most rural parish served by Starlink to the most populous fiber-served city, to benefit from AI.
Future opportunities for Louisiana’s people depend on encouraging both innovation and competition in all three areas: data centers, energy, and broadband. If one is hampered by burdensome regulations, permitting roadblocks, or politically motivated restrictions, the others all suffer. The answer to whether Louisiana can and should lead in data centers, energy, or broadband is all of the above.
LEARN MORE:
- For Whom Are the Data Centers? – The Pelican Institute for Public Policy
- Unlocking Louisiana’s Energy Abundance: Pelican Institute Releases Roadmap to Reform – The Pelican Institute for Public Policy
- BEAD the Call: What the First Four Years of BEAD can Teach Us – The Pelican Institute for Public Policy