Louisiana utility regulators have approved Entergy's (ETR.US) plan to construct three new natural gas power plants designed to supply electricity to Meta Platforms, Inc.'s (META.US) largest data center, according to a press release issued by Entergy on Wednesday.

Meta's newest and largest data center, located in rural Louisiana, spans 4 million square feet (approximately 370,000 square meters) and is designed to support the company's most advanced artificial intelligence (AI) models. When operating at full capacity, the facility is expected to consume up to 5 gigawatts of electricity annually.

According to a report led by Citi analyst Ryan Levine, Entergy had warned that Meta might relocate its data center to other competing states if regulatory approval was delayed. The Louisiana Public Service Commission subsequently implemented a fast-track approval process to approve the project.

The massive energy demands of AI are forcing a restructuring of the U.S. power grid system and creating demand for new infrastructure. The proliferation of energy-intensive data centers has already led to sustained increases in electricity rates.

While Entergy Louisiana CEO Phillip May stated that Meta will bear the corresponding costs of its energy projects, consumer advocacy groups argue that the natural gas power plant plan will not only drive up electricity prices but also pose threats to public health and the environment.

Logan Burke, executive director of the Alliance for Affordable Energy, said in a statement that regulators "prioritized the interests of tech giants and Entergy's profits while completely disregarding public concerns about high electricity rates. Without question, this project will inevitably increase residential electricity burdens and affect water supply resources."

Entergy shares rose as much as 1.73% on Wednesday. The company will also construct new transmission lines to power the data center and procure up to 1.5 gigawatts of solar power generation facilities.