# Meta's data center deal pays for power and uses less water

Markdown copy of https://realalpha.app/s/metas-data-center-deal-pays-for-power-and-uses-less-water/ on Real Alpha, the best minutes from long interviews with the people building AI. Cite and link the page, not this copy.

- Speaker: [Dina Powell McCormick](https://realalpha.app/builders/dina-powell-mccormick/) · Dina Powell McCormick is president and vice chairwoman of Meta Platforms. · Leads Meta's external affairs and AI infrastructure strategy as a former Trump deputy security adviser.
- Host: [Chamath Palihapitiya](https://realalpha.app/people/chamath-palihapitiya/) · Founder & CEO, Social Capital · Led Facebook's growth team; his firm backed Slack and AI chipmaker Groq.
- Host: [Jason Calacanis](https://realalpha.app/people/jason-calacanis/) · Founder & CEO, LAUNCH · Early Uber angel; sold Weblogs Inc. to AOL; hosts This Week in Startups.
- Host: [David Sacks](https://realalpha.app/people/david-sacks/) · Co-founder & partner, Craft Ventures · PayPal's first COO, founded Yammer; White House AI & crypto czar 2025–26.
- Host: [David Friedberg](https://realalpha.app/people/david-friedberg/) · CEO, Ohalo · Founded The Climate Corporation, sold to Monsanto for about $1.1B in 2013.
- Show: All-In
- Episode: [Meta's Dina Powell McCormick: The Case for Data Centers, Backlash, AI Job Boom & Meta’s Future](https://realalpha.app/v/qp2IbgJ5Z-8/), Sep 17, 2026
- Moment: 11:46 to 17:39 of the episode (6 min), playing on https://realalpha.app/s/metas-data-center-deal-pays-for-power-and-uses-less-water/; the episode from there: https://realalpha.app/v/qp2IbgJ5Z-8/?t=706

## Quote

> “But that we actually have to upfront and way more aggressively **explain what our investment and partnership means**.”
> — [Dina Powell McCormick](https://realalpha.app/builders/dina-powell-mccormick/) at [14:57](https://realalpha.app/v/qp2IbgJ5Z-8/?t=897) · All-In

## Takeaways

1. The site uses less water than the farmland used before it.
2. Meta paid for its own generation, grid upgrades and storm costs.
3. Dina says communities should be able to opt out.

## About this segment

Louisiana officials and Meta describe how the project addressed concerns about water, power costs, grid resilience and storms. Their account shows how negotiated local benefits can shape a data center deal.

From “Meta's Dina Powell McCormick: The Case for Data Centers, Backlash, AI Job Boom & Meta’s Future”, Sep 17, 2026. [Watch the full episode](https://realalpha.app/v/qp2IbgJ5Z-8/)

## Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

[11:51](https://realalpha.app/v/qp2IbgJ5Z-8/?t=711) it's pretty clear the economic case for, you know, building and growing and creating jobs. Take us through the list. of valid concerns communities have. One of them is pollution. I'm not sure if this is running off of gas or if it's all solar renewables. Increased electricity cost, water, closed loop versus non-closed loop, noise, pollution, and aesthetics. These buildings are awfully ugly, typically as created.

[12:19](https://realalpha.app/v/qp2IbgJ5Z-8/?t=739) Did any of those apply? Did you get any of that feedback from the community? Or journalists. What's that? Or journalists. No, no, actually it's not journalism, actually. what it is, is it's facts. These are the facts of the people. Hold on, I'll finish. These are the facts that community members have valid concerns about. There are people who have had data centers put next to them that are polluting, that are creating noise, and there are valid water concerns, and there are communities where their electricity went up. So I'm asking a serious question based on facts. I'm wondering if any of those apply to you. Yeah, Gina, you said this was going to be easy. No, no, no. Yeah, clearly, you know, we're all people, right? We all hear, we all have the same concerns. Again, some of it was that we got very lucky with the timing of all

[13:04](https://realalpha.app/v/qp2IbgJ5Z-8/?t=784) this because those issues were addressed before they became in the public forum of issues. You know, number one, this was farmland. This was agricultural land. And early on in the conversations with the Meta team, they made a decision to use a more expensive but more efficient system that actually uses less water than was being used on that land when it was being farmed, right? It's not a statistic you hear very often. The second piece about the energy, clearly we're hearing it across the board, but there are two really critical components to this. Number one is that Louisiana has abundant natural gas. We have about 32,000 miles of natural gas pipelines in Louisiana today, if we don't add another mile. So we have access to natural gas everywhere, But in the relationship that Meta created with Entergy, the energy provider there,

[13:54](https://realalpha.app/v/qp2IbgJ5Z-8/?t=834) from day one, before this was an executive order from the president or even the governor, Meta paid for its own generation. It paid for grid resilience. It paid for grid upgrades. It paid for storm costs. Louisiana has storm assessments when we have hurricanes. It happens every now and then. It's paying for storm costs in a state where they didn't operate, right, when these hurricanes hit. So it's actually taking burdens off of the Louisiana consumer.

[14:18](https://realalpha.app/v/qp2IbgJ5Z-8/?t=858) So, all those issues were issues, and they were addressed with the original negotiated deal. And I will say, it's really why it's become the prototype for how we move forward with others. So, Dina, this is a question for you. You used to be the Deputy National Security Advisor. So, answer this maybe with just a bit of that hat on. I mean, Jason brings up valid concerns, but then there's this data that is so clear for you, but also for others.

[14:40](https://realalpha.app/v/qp2IbgJ5Z-8/?t=880) I mean, you just heard from Satya. Why is this misinformation campaign winning so soundly in America? What has happened? Like, what is going on? Well, I think first, the questions that Jason raised are really legitimate questions. And I think we start with a premise that if a community doesn't want one of our data centers, they get to choose. They get to decide. But that we actually have to upfront and way more aggressively explain what our investment and partnership means.

[15:09](https://realalpha.app/v/qp2IbgJ5Z-8/?t=909) And we have a compact, a compact that Susan and Sheldon are describing. First, not just pay for your own electricity. make sure that you're working to drive electricity costs down. The second is the water issue. It's very real in farmlands and rural communities, but there's absolutely now new technology, in fact, AI-driven technology, that makes you able to actually increase water consumption. The third is the teachers.

[15:32](https://realalpha.app/v/qp2IbgJ5Z-8/?t=932) I'll be very honest. This was not our idea. This actually happened because this law allows, or in fact mandates, that every extra dollar of tax surplus goes directly to the teachers. And the superintendent was telling me things that just are so remarkable used to have a hard time recruiting teachers Now his phone is ringing off the hook throughout Louisiana teachers wanting to come there And this may end up being the best school district in the entire state and now we have taken that learning and we're in investing in teachers and first responders, and you saw, of course, the economic development impact for small businesses. That's our compact. Everywhere we go, Meta makes sure that we do those things. But to answer your question, Shamath, I don't think that our industry has done a good job communicating, just flat out. We have to do a better job. But before you can

[16:21](https://realalpha.app/v/qp2IbgJ5Z-8/?t=981) communicate anything, you've actually got to be meaningful and have real impact. And so we've started with the premise that we want to be the best actor and the best partner possible. And now having, frankly, the impact that we see in Louisiana, we're very proud of the impact you're having in Texas and Ohio. But I think we have to tell these stories more. And I know you're alluding to where is this information coming from? You know, it was just with Chairman Cotton and Vice Chairman Mark Warner and the intelligence committees. You know, they do believe they have evidence that our adversaries are trying to gin this up. I can't comment on that. But what I can tell you is if you wanted to stop America right now, what would you do? This is exactly what you would try to do. If you were any of our adversaries, you would want us to stop building data centers in

[17:02](https://realalpha.app/v/qp2IbgJ5Z-8/?t=1022) the United States so that we could, you know, we would not be on a path to being AI dominant in the world. This is what you would do. So whether they're doing it or not, this is definitely an approach you would take. And I actually said to them very respectfully, these are great jobs and the communities that want the jobs, want the teacher bonuses, want these investments should be allowed to have them.

[17:24](https://realalpha.app/v/qp2IbgJ5Z-8/?t=1044) And those that don't should opt out. But we certainly don't want our companies, my company, and our peers to start thinking about building data centers outside the United States. It's so easy to debunk these issues.