RICHLAND — Tech companies could receive significant tax breaks in Louisiana as data centers break ground in the state. 

According to a report by The Advocate, Meta officials told state officials in 2024 that they would need significant tax breaks while negotiating the $27 billion data center project currently being built in North Louisiana. 

Based on projections of Louisiana's tax exemptions and the expected expenditures of the companies, state and local governments could potentially give billions in tax breaks to the tech giants. 

Several states, including Louisiana, have seen backlash to data centers as residents worry about potential rising electric costs and strain on water systems.

Virginia is currently debating whether or not to repeal tax exemptions for the tech companies, as it has cost state and local governments in Virginia $1.9 billion in 2024 alone. 

The tax break exempts data centers from state and local taxes for multiple things data centers require, including servers, chillers, electric infrastructure and construction costs. 

The scale of the data center projects, which include tens of billions in spending, coupled with Louisiana's sales tax of 10%, means tax breaks could be worth huge amounts.