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Entergy has increased its four-year capital expenditure plan by around 33% to USD 57 billion, largely driven by rising demand from Meta’s data center expansion in Louisiana. The utility will build multiple gas-based power plants to support these projects, while also seeing strong growth in industrial power consumption. Higher data center activity has boosted sales and profits, though debt and operating costs have also increased. The company maintains that new regulatory structures will ensure data centers bear higher costs, potentially easing the burden on regular consumers.
Entergy has raised its four-year capital spending plan to approximately USD 57 billion, marking an increase of about 33%. The move is primarily linked to expanding energy infrastructure required to support Meta’s growing data center operations. Advertisement
Power demand in the United States had reached record levels in 2025 and is expected to continue rising. This growth is being driven by rapid development of large-scale data centers by technology companies, some of which consume electricity comparable to that of entire cities.
The company has been among several utilities that have increased capital expenditure in recent years. These investments are focused on building new power plants and strengthening transmission networks to support the surge in electricity demand from digital infrastructure.
In the past month, Entergy entered into an agreement to supply electricity to Meta’s data centers in Louisiana. The project involves the development of seven natural gas-based combined-cycle power plants with a total capacity exceeding 5.2 gigawatts. For context, one gigawatt can supply power to roughly 750,000 homes.
This development builds on an earlier agreement announced in 2024, under which Entergy had already begun constructing multiple gas-fired plants for a large Meta data center campus in the same region.
The company also indicated that there is strong future demand, with potential data center customers accounting for an additional 7 to 12 gigawatts of capacity seeking connection to its network.
At the same time, the rapid expansion of data centers has raised concerns about cost-sharing. There is ongoing debate over whether residential and small business consumers may indirectly bear part of the cost of building large-scale energy infrastructure for major technology firms.
Entergy has stated that the latest agreement with Meta is structured in a way that could reduce electricity costs for other customers over time. The company noted that the deal falls under a revised regulatory framework, which requires data center operators to contribute more towards their energy-related infrastructure needs.
Financially, Entergy reported a 6.7% increase in its first-quarter profit. Weather-adjusted retail sales rose by 6%, supported by higher industrial consumption, particularly from data centers, metal manufacturing, and transportation sectors.
Industrial electricity sales for the quarter increased by nearly 15%, reaching 15,895 gigawatt-hours. However, the company’s debt rose by 10% to USD 34.18 billion, while operating expenses climbed close to 22% to USD 2.61 billion during the January–March period.
Net income stood at USD 384.92 million, or 83 cents per share, compared to USD 360.76 million, or 82 cents per share, in the same period last year. On an adjusted basis, profit reached 86 cents per share, aligning with market estimates.
Source Reuters
5th Jun, 2025
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