Misinformation about the challenges and benefits associated with data centers run rampant on social media and in public forums. Facts show that data centers can provide vast economic benefit to local jurisdictions in which they operate, provide numerous high-quality jobs, cover all of the electrical expenses associated with them, in some cases even lowering rates for existing ratepayers, and are able to be built in such a way that water consumption is very low. Data centers are increasingly being built at large scale, and care needs to be taken to minimize challenges and maximize positive impacts.

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What is the overall capital deployed to design and build the Rapides Parish data center campus?

$7.2 Billion capital deployed includes $3.6B in direct investment from Applied Digital and an additional $3.6B projected from the hyperscaler tenant -- capital deployed to design, build and equip the Delta Forge 1 Data Center campus.

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How many total new jobs? 

418, including 200 direct and anticipated 218 indirect jobs

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What is the payout to the Rapides Parish over the life of the agreement?

• $77 Million - Rapides Parish Government

• $7.6 Million/ Year & $206.2 Million Cumulative - Rapides Parish School System

• $575.5 Million - 10 local Rapides Parish Taxing Bodies over the 27-year agreement (TBD Consultant)

• $3.3 Million/ Year & $88.1 Millions Cumulative - Rapides Parish Sheriff's Office

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What is the combined annual payroll of the Rapides Parish data center?

$32.67 Million

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Do data centers use a large amount of water?

• Applied Digital’s cooling system consumes zero water on a regular basis. Water consumed on-site is for bathrooms, kitchens, facility cleaning, and irrigation for plants. 

• More Details: Applied Digital uses an innovative, closed-loop water system that eliminates the need for regular water consumption for cooling the equipment. The system works similar to the radiator in your car. The water-glycol mix is filled in the system up front and it circulates repeatedly through the system. If maintenance is done on the system, there is a chance some fill up will be required, but this is not a regular occurrence. This system ensures the data center operates sustainably without putting pressure on local water resources. As a result, regular water consumption on site is used for bathrooms, kitchens, hand washing, cleaning the facility, and irrigation for landscaping.

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Do data centers strain the power grid and increase outages?

• To meet increased demand from large-load customers, data centers help accelerate investment in new generation, transmission upgrades and resiliency improvements that benefit all customers. 

• More Details: To meet increased demand from large-load customers, data centers help accelerate investment in new generation, transmission upgrades and resilience improvements that benefit all customers. In addition, data center occupants often have their own renewable energy requirements that can help bring new solar and other types of clean energy onto the grid.

  • In addition, Cleco is a part of Midcontinent Independent System Operator (MISO), a regional transmission organization (RTO) focused on system adequacy, flexibility, and stability. MISO’s Reliability Imperatives prioritize continued grid reliability into the future, accounting for data centers, severe weather, and more. Notably, Cleco power is over 99.9% reliable, and Cleco is the only utility to meet Louisiana reliability standards for each of the last 27 years.

 

Will this data center cause utility bills for residential customers to increase?

• Large customers like data centers can reduce costs for existing customers because system costs are shared across a large customer base. Like other large electricity consumers, the data center pays for the infrastructure it uses. And data centers pay a large share of fixed utility costs, which in many cases can actually lead to a reduction in bills for other consumers. 

• More Details: The opposite is true. Large customers can help spread fixed costs across more usage, so data centers can reduce cost pressures on existing customers over time because system costs are shared across a larger customer base. 

  • On another project, increased usage by Applied Digital caused consumers to save over $38M to date, and the numbers are expected to continue to grow as the project ramps up. This does not mean that this is always going to be the case, but it is possible that rates can in fact go down from a large load.

  • Rising power costs across the country are also due to other factors, like inflation, the need for infrastructure improvements, grid hardening to offset severe weather risks, and increased power generation costs. Further, Cleco is regulated by the Louisiana Public Service Commission and cannot set rates or pass along any rate changes without the Commission’s approval. This protects customers from unfair rate increases and ensures that large tech companies pay their fair share.  

 

Is this data center loud and disruptive to the community?

• Modern data centers are surprisingly quiet. Most noise-making equipment is contained within the thick concrete walls of the facility. Sound-generating equipment that may be heard directly at the building is similar to large AC units and backup generators. Both types of equipment make relatively low amounts of noise and data centers use tools such as distance, noise reduction technology, blocking, and appropriate siting to minimize or eliminate impacts.

• More Details: Computer equipment and generators are housed inside precast concrete, sealed buildings, heat exchangers emit minimal noise, and backup generators are used only in emergencies or under maintenance at controlled times and are strictly regulated. The project may use sound barriers and strategic setbacks to keep noise low in addition to other sound reducing technologies. A sound study was completed prior to the construction of the project to understand the baseline noise levels from the area and the project will work to ensure that neighbors are not negatively affected by the sound of the facility. 

 

Is this data center bad for the environment?

• Data centers are required to follow all of the same environmental regulations that everyone else does including emissions, pollution, sewer, water, and other requirements. 

• More Details: Modern data centers are able to run with relatively low amounts of water, produce much less noise than many people expect, and continue to have technological improvements that increase the efficiency of the facilities to meet consumer demand while reducing impact. 

 

Will this data center create local jobs or provide economic benefits to communities?

• Data centers can provide highly skilled, well-paid jobs and significant tax revenue, which helps fund schools, government programs, and infrastructure. There is typically major indirect job creation in construction, logistics, and tech, thus attracting further innovation. 

• More Details: 

  • Data centers provide highly skilled, well-paid jobs, and significant tax revenue, which helps fund schools and infrastructure projects. 

  • There is also typically major indirect job creation in construction, logistics, and tech, thus attracting further innovation. The planned project is expected to result in 1,000 jobs during the construction process and 200 long-term on-site jobs for the region. 

  • Once completed, this data center can also be expected to generate significant tax revenue for local government to support schools, roads, public safety, community development like parks, etc. 

  • Data centers can also attract other businesses to the region that service data centers, including companies in power distribution and management, IT hardware, cybersecurity, design, construction and management consulting. Data centers also offer opportunities for community partnerships, like collaboration between power companies, economic development organizations, local government, and more.

 

Could this data center abandon a project after Cleco has invested in building new generation and transmission infrastructure, leaving customers responsible for costs without delivering on the benefits?

• Costs for infrastructure investments and power generation will be reimbursed by Applied Digital with guarantees made that prevent the shifting of costs onto other rate payers. These upgrades will benefit customers in the long term.

• More Details: Costs for infrastructure investments and power generation will be reimbursed by Applied Digital with guarantees made that prevent the shifting of costs onto other rate payers.  These upgrades will benefit customers in the long term. Improving infrastructure to help meet customer needs will lead to stronger resiliency and reliability for all customers. The facility is being built to be a long-term asset with a 15-year initial lease term and three 5-year renewals. Facilities are expected to last for decades beyond the initial leases, and there are no plans to demolish or decommission the facilities.

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Who is Applied Digital?

Applied Digital (Nasdaq: APLD) Named Best Data Center in the Americas 2025 by Datacloud — is a next-generation digital infrastructure company that designs, develops, and operates high-performance data centers and colocation solutions for artificial intelligence, cloud, networking and blockchain industries. Founded in 2021 and headquartered in Dallas, TX, the company blends hyperscale development expertise with proprietary water-less cooling technology and sustainable engineering practices to deliver secure, scalable compute capacity at unprecedented speed and efficiency. 

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How much traffic will this cause during construction?

During the initial construction phase—focused primarily on-site preparation and building erection —traffic from the project will be relatively minimal. Applied Digital will continue working closely with Rapides Parish to adjust traffic patterns, coordinate timing, and implement any necessary improvements to support safety and minimize impact on the community. 

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Will this data center impact power reliability?

This data center will pay the full cost of the power and infrastructure needed to serve the facility. This investment helps reduce costs for existing customers by spreading the system expenses across a broader customer base and can bring upgrades to power lines, substations, and equipment, which strengthen the grid and benefit all customers by reducing outages and improving service quality.

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Will this data center increase retail electric bills?

This data center’s investment can help reduce costs for existing customers by spreading the system expenses across a broader customer base.

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Is this data center paying for the infrastructure it needs?

This data center will pay the full cost of power and infrastructure needed to serve them.

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How big will this data center be? Are there plans for future development?

The current planned footprint of the buildings and substation use 300 acres of the roughly 672 acre site secured by Applied Digital. Future uses for the remaining land are not confirmed.

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What benefits will this bring to the region?

• Tax revenue: This project will generate significant property taxes that help fund schools, public safety, parks and other community services.

• Job creation: Once fully operational, this site will employ more than 200 full-time personnel, 218 indirect personnell and is expected to peak at around 1,500 construction workers during development. Additional long-term contractors will also support operations.

• Economic growth: Attracting a technology-focused business may bring more tech companies to the region, helping diversify the local economy.

• Community engagement: Applied Digital has a strong record of working with communities. In 2024, they won a Community Impact Award for a public-private partnership addressing housing shortages in one of their locations, which helped develop homes and apartments to support workforce growth and economic development.

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How can community members have a voice in this project?

Applied Digital hosts town hall and community events and residents are encouraged to attend to ask questions. You can also email Community@AppliedDigital.com.

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Will Rapides Parish be burdened by additional wear and tear on the roads surrounding the project?

In previous projects, Applied Digital has partnered with local governments to improve roads, add turn lanes, and repair wear caused by construction traffic. Similarly, they will work with the Town of Boyce and Rapides Parish to address these concerns.

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How much water will this data center use? Is this a concern?

This data center is designed to use very little water -- roughly comparable to a few households annually. Its closed-loop cooling system recirculates liquid, helping protect local water sources.

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How will this project impact our community?

Applied Digital anticipates the full buildout of this project could become one of the largest contributors in the parish and state. That means more funding for the things that matter most—like schools, roads, police, fire and emergency services, and other local needs. These dollars should also strengthen local services without increasing the tax burden on residents.

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What is the projected timeline for Delta Forge 1?

Construction of Applied Digital’s Rapides Parish AI Factory is planned as a two‑year, phased build. Initial site preparation, deep foundations, and pile driving are the first stages, with Building 1 to be weather‑tight approximately 6-8 months after construction start, and foundations for Building 2 completed in the same timeline. Interior build‑out, electrical and mechanical system installation, and commissioning will follow in stages through 2027 and 2028, allowing portions of the facility to become operational as they are completed. 

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What are the diesel generators for and how much will they operate?

Diesel generators are utilized at this data center for emergency backup purposes when grid power is unavailable. The generators are tightly regulated from an air quality perspective. Generators are required to turn on briefly from time-to-time for testing and maintenance.

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Is the facility intended to be a long-term asset? Could it be decommissioned in the future?

The facility is built to be a long-term asset. There are no plans to demolish or decommission the facilities.

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What is the approach to community engagement and benefits for Rapides Parish?

Applied Digital invests for the long term. They want to be good neighbors and collaborate well with their communities. From an engagement perspective, they hold town halls, attend lots of local events, and try to be as present as possible so that they're accessible and able to work through things that come up with the community. From a funding standpoint, they have a program called Applied Digital Cares, which can provide funding for non-profits. You can learn more about this at www.AppliedDigitalCares.com.