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Applied Digital confirms data center capacity coming to Rapides Parish, Louisiana

Gigawatt-scale capacity expansion by major AI infrastructure peer
Trade pressSlicast · June 25, 2026 · US · Source: Google News
importance 87

During a town hall on June 23, central Louisiana residents expressed significant skepticism about "Delta Forge One," an incoming data center slated for completion in early 2027, south of Boyce. To verify key details, KALB filed records requests with England Airpark's Economic & Industrial Development District (EEIDD) and Rapides Parish Police Jury.

Applied Digital's plans allocate 672.52 acres for Delta Forge's campus, though only 300 acres are designated for construction of two buildings across four phases, with remaining land reserved for "future use." The company operates under a 15-year initial lease with three five-year renewal options. Construction plans reflect schematics for two to three additional "future" buildings, retention ponds, and fuel storage.

**Water usage**

Water usage details remain largely inaccessible due to trade secret exemptions under Louisiana public records law. However, Applied Digital's Executive Vice President of External Affairs, Nick Phillips, provided limited information during the town hall: "This is going to be a roundabout guess, but it's going to be close to 600, 800-ish thousand gallons of water."

Rapides Island Water Association will serve as the primary potable water provider. Internal documents acquired by KALB estimate daily consumption based on "typical office-type facilities" such as toilets and sinks. According to the U.S. Environmental Protection Agency, the average U.S. family uses over 300 gallons daily, meaning Delta Forge One's projected consumption—equivalent to four to sixteen households' daily water use—remains well within documented estimates.

**Power infrastructure**

Applied Digital reports a "critical IT load" of approximately 300 megawatts for the two planned buildings, excluding cooling and lighting equipment. According to U.S. Energy Information Administration data, this equals the annual electric load of roughly 188,000 houses in the southern United States.

Cleco has pledged full power provision, identifying the project as its largest customer to date and committing to cover all construction-related costs. "For years, we've been looking for large customers to locate to Central Louisiana to help levelize all those increased costs that we've experienced over the last several years," said Cleco Chief Commercial Officer Shane Hilton. "We don't expect any rate increase due to this project coming to central Louisiana. In fact, it's actually what we need to ensure that we can stabilize and keep rates reasonable."

Applied Digital Director Richard Nottenburg echoed this in a May interview, suggesting electricity rates could potentially decrease for residential consumers.

When questioned about power outage prioritization, Hilton clarified: "No, it's not a priority for the data center. They actually have backup generation installed behind the meter on site. So, if power is lost—let's say a hurricane comes through and tears a transmission line down feeding the facility—their backup system will turn on, and they'll be self-sufficient until we can restore the power."

He explained that the facility connects to a dedicated 230,000-volt transmission line, unlike residential service at 13.2 KV, meaning impacts from catastrophic events would depend on circumstances. Regarding cost responsibility, Hilton stated: "The data center is going to cover their entire cost of infrastructure. They're going to pay for all of the transmission infrastructure, the substations, the breakers, everything required to supply power to them is on their nickel. There's also a process we have to go through with the Public Service Commission. They're going to do a prudency test and make sure that there are rate payer value metrics instilled and that any cost that these data centers cause, they're going to pay for."

**Environmental permits and emissions**

An Initial Synthetic Minor Source Permit application filed with the Louisiana Department of Environmental Quality reveals each of the two buildings will accommodate 96 diesel-fired emergency generators, supported by 32 diesel fuel storage tanks for power outages. Applied Digital claims the facility qualifies as a "minor source" for air pollutants.

Under its water permit, LDEQ has authorized the company to discharge stormwater associated with construction into the neighboring Bertrand Bayou.

On May 27, LDEQ cited Applied Digital for Failure to Control Particulate Emissions after inspectors, responding to citizen complaints about dust, observed "particulate matter" becoming airborne during construction.

**Economic terms and employment**

Under a PILOT (Payment In Lieu of Taxes) agreement, Applied Digital will pay a fluctuating flat fee annually, decreasing over time, rather than standard taxes. The company must also pay $18,000,000 per year for three years to regional taxing bodies and community development, though sources indicate final distribution details remain pending.

Applied Digital is contractually obligated to create and maintain 200 full-time jobs within five years at wages at or above 150 percent of the then-statewide annual average wage.

**Development concerns**

Louisiana Central CEO Chris Masingill, a key project facilitator, addressed concerns about non-disclosure agreements during the town hall: "NDAs are a very common practice, particularly at the very beginning of an economic development project. It's about protecting the integrity of the project and protecting proprietary information from the companies. Oftentimes, we're actually competing with several companies for one site, and companies need the reliability that their information will be protected because this is about companies being competitive and showing integrity to the process."

When questioned about environmental and noise studies, Masingill noted: "Not only have they been conducted, but they're still going on because there are a lot of permits being applied for. Applied Digital has done their own engineering and environmental impact assessment, which continues as part of the process as various entities review building plans."

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Applied Digital confirms data center capacity… · Slicast