In a significant development for the tech industry, Meta, formerly known as Facebook, has received approval for a massive $10 billion data center project in Kansas. The project, which will be Meta's largest data center to date, has stirred controversy due to its energy sourcing strategy.
The social media giant has entered into an agreement with Evergy, a local utility company, to power the facility using three natural gas-fired power plants. These plants, slated to come online in 2023 and 2024, will have a combined capacity of 2.25 gigawatts. The data center itself is expected to consume up to 900 megawatts at peak usage, highlighting the enormous energy demands of modern tech infrastructure.
While the project has received the green light from state regulators, it has not been without opposition. A group of large industrial customers, including Occidental Chemical, has raised concerns about potential preferential treatment for Meta and Evergy in the development of an additional 1.3 gigawatts of solar power across Kansas. These companies claim they have faced challenges in procuring renewable energy for their own operations.
Another point of contention is the 15-year duration of Meta's contract with Evergy. Critics argue that ratepayers may be left bearing the costs after the contract expires, especially considering that gas power plants typically operate for 30-40 years. The Institute for Energy Economics and Financial Analysis has pointed out that power projects of this magnitude often exceed their budgets, with the excess costs frequently passed on to consumers.
Furthermore, Evergy will be responsible for constructing a $52 million transmission line to the data center, raising questions about the allocation of infrastructure costs.
The approval of these natural gas power plants appears to be at odds with Meta's recent efforts to increase its use of renewable energy. The company has been actively pursuing green energy initiatives, including a recent 720 MW renewable energy purchase. However, the reliance on natural gas for this project may complicate Meta's commitment to achieving net-zero emissions.
To offset the carbon dioxide emissions from these power plants, which are expected to operate for decades, Meta will likely need to invest heavily in carbon removal projects and purchase carbon credits. This strategy has raised eyebrows among environmental advocates who argue for more direct renewable energy solutions.
As the project moves forward, it will undoubtedly be closely watched by industry observers, environmental groups, and local communities alike. The balance between technological advancement, economic development, and environmental responsibility remains a complex challenge for tech giants like Meta as they expand their physical infrastructure.