Why It Matters
Louisiana continues to attract large-scale artificial intelligence infrastructure investment, with state officials announcing a major new campus in Rapides Parish that would rank among the largest economic development projects in the region’s history. The project signals growing competition among states to land data center projects tied to the AI industry’s rapid expansion.
What Happened
Applied Digital Corp. has announced plans to develop a $3.6 billion AI campus called Delta Forge 1 in the town of Boyce, in Rapides Parish. State officials with Louisiana Economic Development confirmed the project Tuesday. The company, which specializes in digital computing infrastructure for cryptocurrency operations and AI workloads, will build the facility across approximately 300 acres.
Site preparation began in January, with the first phase of operations targeted for mid-2027. The campus will initially house two facilities requiring a combined 300 megawatts of electricity, to be supplied by utility provider Cleco. No new power plant has been announced to meet that demand.
By the Numbers
- $3.6 billion — total projected investment in Delta Forge 1
- 300 acres — size of the planned campus in Boyce, Louisiana
- 200 permanent full-time jobs expected upon operation
- 1,000+ temporary construction jobs projected at peak building activity
- 300 megawatts — initial power requirement, roughly equivalent to the peak summer load of 200,000 homes
Tax Incentives
Applied Digital will benefit from a Louisiana sales tax exemption on qualifying data center equipment purchases and leases. The carve-out was established through legislation passed during the 2024 regular legislative session, making the state more competitive in attracting large-scale technology infrastructure.
Zoom Out
The Boyce project is the latest in a wave of high-value data center commitments to Louisiana. Meta has announced a $30 billion facility in Richland Parish, Amazon has committed $12 billion for campuses in Caddo and Bossier parishes, and Hut 8 has disclosed a $10 billion AI campus in West Feliciana Parish. Taken together, these projects represent tens of billions of dollars in planned private investment across the state.
Nationally, states across the South and Midwest have ramped up incentive packages to attract data center development as demand for AI computing infrastructure surges. Louisiana’s combination of available land, utility access, and targeted tax policy has positioned it as an active competitor in that market. Louisiana’s evolving political landscape — including recent shifts in the state’s Republican establishment — may also influence how the state structures future economic development policy.
What’s Next
With site work already underway, Applied Digital is expected to move into full construction phases in the coming months. State officials and Cleco have not yet outlined how the 300-megawatt power demand will be met over the long term, a question that will likely draw attention from regulators and ratepayer advocates as the project advances toward its mid-2027 operational target.