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With the enactment of Louisiana Revised Statute 47:305.73, the state has taken significant steps to incentivize the development of data centers. The statute provides a state and local sales and use tax exemption for eligible data center equipment, software, and certain construction and development costs.

However, while the exemption provides substantial opportunity, there are still questions regarding the practical application of the statute.

Under R.S. 47:305.73, an “approved data center facility” is defined as a facility located in Louisiana that is certified by Louisiana Economic Development (LED). To qualify, the operator must attest that the project will create a minimum of 50 new direct, permanent jobs and expend at least $200 million in new capital investment in Louisiana between July 1, 2024, and July 1, 2029.

Below are some of the state incentives offered to data centers in the Southern US:• Alabama: Tiered sales and property tax abatements lasting 10–30 years depending on capital investment levels from $200M to over $400M.• Arkansas: Full sales and use tax exemption for data center investments of $100M+. Enhanced exemptions for mega-projects of $2B+ and significant payroll.• Florida: Sales and use tax exemption for data centers investing $150M+ with at least 15MW of critical load; certificate and reporting requirements apply.

In December 2024, Meta announced its decision to locate a $10 billion AI Optimization Center in Northeast Louisiana, in Richland Parish, a milestone that has placed the state squarely in the national competition for data centers and AI-driven investment. Louisiana has since enacted a new data center sales and use tax exemption, aligning itself with aggressive incentive policies emerging across the country. The development is expected to be Meta’s largest data center in the world, spanning roughly 2,250 acres with approximately 4 million square feet of data center and support facilities at full build-out.

Louisiana Economic Development (LED) has advanced several important initiatives that will shape economic development activity across the state in 2025 and beyond. LED recently submitted its Summary Report to the Louisiana Legislative oversight committees regarding the proposed rules for the new High Impact Jobs Program (HIP), originally published in the Louisiana Register on August 20, 2025. These rules are scheduled for review by the Joint Legislative Committee on the Budget on November 20, 2025.

LED also issued emergency rules on October 30, 2025, establishing the operational framework for the Site Investment and Infrastructure Improvement Fund, which powers the state’s new FastSites Program. The FastSites Program is designed to accelerate the development of market-ready sites across Louisiana by directing state resources toward strategic land and infrastructure improvements. The first tranche of applications is now open and will be accepted until December 15, 2025. LED and its third-party evaluators will review submissions in late December and January, with funding awards anticipated in February 2026.