Confirm big development win with water study

It looks like another economic development win for Republican Gov. Jeff Landry, and one that may pass muster with those concerned about resource-hungry industries that might hike prices to Louisianans.

This week, Landry confirmed a long-believed supposition that both Caddo and Bossier parishes were going to pick up some data center action. While the $12 billion in infrastructure Amazon has said it will spend on three such centers in the two parishes, that it estimates will create hundreds of permanent jobs nearing six figures in pay, is well short of the $27 billion Meta is spending on its Hyperion project in Richland Parish, it’s still quite a shot in the arm for a flailing Caddo economy and juicing the upswing in economic activity in Bossier.

Key to this are competitive measures that Landry and the Louisiana Legislature passed into law a couple of years ago, and also a commitment by the Landry Administration to expedite large projects. But as importantly, Louisiana holds resource advantages that many other states can’t match, such as abundant and inexpensive (fossil fuel) energy and ways to transport it.

Yet that also has been a point of contention among some. The energy is there but needs scaling upwards, and that will cost money. The potential public utility providers for this could in the process of that provision pass costs on to other ratepayers in the case of upgrades that these consumers also could access. For example, Entergy Louisiana for Hyperion is building some extra infrastructure that can assist in transporting power to other consumers along with Meta, which it can petition the Louisiana Public Service Commission to raise rates accordingly to pay that expense.

However, Amazon headed that off by saying it would take care of all such costs, both new power sources and associated infrastructure for resource use. Still, another set of concerns centered around less-fungible resources, principally water, which is valuable in cooling the tremendous heat generated by data processing where if not mitigated heat will incapacitate computing ability.

Specifically, concerns have been raised about whether the use of local water resources would beggar other users, principally residents in northern Caddo Parish within a few small communities and around them who primarily draw water from Caddo Lake. In response, Amazon noted that only 13 percent of cooling it expected to have to come from water.

That response is only somewhat reassuring, as Amazon indicated that 13 percent would come in warmer weather, all at once. At present, it’s not known publicly whether accessible water sources, whether ground or surface, exist in quantities sufficient to make everybody happy in the hot months. Presumably, Amazon and state officials have hashed this out and determined there won’t be a run on water large enough to start raising rates in summer.

Earlier this month, Republican Caddo Parish Commissioner Chris Kracman offered a resolution to place a moratorium on voluminous water withdrawals from Caddo Lake, but did not draw a second. Kracman has said he would support a study resolution on the matter without a moratorium, but other commissioners have yet to signal they would approve that, either. In the meantime, a local nonprofit organization dedicated to conservation efforts for Caddo Lake has said it will look into the question.

To reassure the public, such a study could be undertaken – if it already has not but has yet to be made public – at the state level whether at the behest of the Legislature. Resolving this matter that demonstrates ample capacity would be the final effort that gets the ball over the fence for a big home run for Louisiana’s, particularly in the northwest, economic development.