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Mark Zuckerberg considered leaving California over the billionaire tax

22 October 2026 at 00:13
Meta CEO Mark Zuckerberg
Meta CEO Mark Zuckerberg.

Finn Gomez/Getty Images

  • Meta CEO Mark Zuckerberg considered moving out of California because of a proposed billionaire tax.
  • Zuckerberg would get $20 billion in "immediate liquidity" if the billionaire tax passes.
  • Meta made the offer to Zuckerberg to help keep him in California after he considered leaving.

Meta CEO Mark Zuckerberg considered moving out of California because of its proposed billionaire tax, Meta disclosed in a new SEC filing on Wednesday.

Next month, Californians will vote on Proposition 40, a one-time tax on the assets of the state's billionaires.

The filing said that Zuckerberg told a special committee formed by Meta that he was considering moving.

In response, the committee concluded that it was "critically important" for Zuckerberg to keep running Meta close to its Silicon Valley headquarters — particularly to its AI division, Meta Superintelligence Labs.

The filing said the committee got Zuckerberg to agree to remain in California or any other jurisdiction where Meta has its corporate headquarters for eight years, barring unforeseen circumstances.

As part of its efforts to ensure he can remain in charge as it raises more cash for its AI initiatives, the company is granting the Meta CEO a new stock class.

The shares would give Zuckerberg $20 billion in "immediate liquidity" to cover the tax by selling stock without losing control of Meta, if the tax passes. The new shares wouldn't add to Zuckerberg's net worth or increase his percentage ownership of Meta.

"The goal is to keep Mr. Zuckerberg continuing to lead the Company from California," the filing says.

Meta declined to comment. A person familiar with the matter said that the new class of shares, which totals $150 billion, is also intended to raise capital, compensate employees, and keep Meta's stock price on the right track.

Meta's filing showcases how tech billionaires are responding to the tax proposal. Some, including Google cofounder Sergey Brin and former CEO Eric Schmidt, poured hundreds of millions of dollars into attack ads against the proposal.

While Zuckerberg has taken a lower-key approach, it's clear he's been taking the proposed tax seriously.

The Meta CEO, who is worth about $240 billion according to Forbes, has multiple residences in California, including in Palo Alto and Lake Tahoe.

He also has a sprawling property portfolio outside the state, including a doomsday bunker in Hawaii, a waterfront mansion in Miami, and a castle in Ireland.

Have a tip? Contact this reporter securely on Signal at charlesrollet.12 or +1-628-282-2811. Use a personal email address and a non-work device; here's our guide to sharing information securely.

Read the original article on Business Insider

Elon Musk says SpaceX hitting $1 trillion in revenue in 2028 is 'no longer impossible'

21 October 2026 at 13:41
Elon Musk
SpaceX and Tesla CEO Elon Musk.

JOEL SAGET/AFP via Getty Images

  • Elon Musk says it's "no longer impossible" that SpaceX will generate $1 trillion of revenue in 2028.
  • The SpaceX CEO said in August that his company projected that much revenue for 2030.
  • SpaceX would have to grow its revenue 53-fold in three years to reach Musk's new figure.

Elon Musk always shoots for the moon, but he's aiming even higher with his latest suggestion.

"As crazy as this sounds, $1T in SpaceX revenue in 2028 is no longer impossible," the Tesla and SpaceX CEO said in a Tuesday post on X.

As crazy as this sounds, $1T in SpaceX revenue in 2028 is no longer impossible https://t.co/jF3Wue95nL

— Elon Musk (@elonmusk) October 20, 2026

That's an even more ambitious timeframe than Musk has previously given. He said in August that SpaceX was internally projecting $1 trillion of revenue in 2030, and there was a "non-zero" chance it could reach that amount in 2029.

Musk made his latest pronouncement within hours of saying on SpaceX's third-quarter earnings webcast that annual recurring revenue could reach between $500 billion and $1 trillion by the end of 2027.

In a post-earnings note, JPMorgan forecast SpaceX would generate $254 billion of revenue in 2027.

If SpaceX were to generate $1 trillion in revenue in 2028, that would represent a 53-fold increase in three years. It earned just under $19 billion in 2025. It shared its historical financials prior to going public this summer.

After the bell on Tuesday, SpaceX — the company behind Falcon rockets, Starlink satellites, X, and AI chatbot Grok — posted close to $15 billion in revenue last quarter, up 161% from the same period of 2025.

The key driver was its super-intelligence division, where revenue surged 830%, from around $800 million to $7.6 billion. SpaceX attributed the growth to new cloud services agreements, around $600 million of revenue from its recent Cursor acquisition, and increased Grok adoption by enterprises.

To put Musk's $1 trillion revenue figure in context, Amazon and Walmart, the two highest-revenue companies on the planet, both generated a little over $700 billion in net sales last financial year.

Musk is floating the possibility that SpaceX could generate more than 40% more revenue than either of them did last year, in about two years' time.

It's unclear whether Musk is including Tesla, which generated about $95 billion of revenue last year, in his newest revenue figure. He revealed on Tuesday that Tesla and SpaceX have formed committees to explore a potential merger.

Susannah Streeter, Wealth Club's chief investment strategist, told Business Insider by email that a tie-up could "combine expertise in AI, chips, robotics and connectivity."

But she added that "bringing two enormous businesses with very different operations and capital demands under one roof would be a hugely complex undertaking."

Streeter said that notching $1 trillion in annual revenue in 2028 would be a "very tall order" and require an "extraordinary leap in the scale of the business."

"Moving the goalposts from 2030 to 2028 suggests he is increasingly confident that several growth drivers could accelerate at once, but there is a difference between a target that is technically possible and one that is commercially realistic," she added.

Neil Wilson, UK investor strategist at Saxo Bank, told BI by email that Musk's latest revenue figure is "pushing it" and "would imply such an enormous pull-forward in demand as to defy credibility."

Wilson added that he'd "never say never" about SpaceX hitting $1 trillion of revenue, "but by 2028 I'd say the chance is zero, whatever Elon says!"

Read the original article on Business Insider

Tech Billionaires and the New Struggle for Political Power

21 October 2026 at 12:39

In his book The Nerd Reich, journalist Gil Durán examines how Silicon Valley’s wealthiest investors are extending their influence over American politics, democratic institutions and national sovereignty. His warnings come amid unprecedented political spending by technology billionaires and growing concern over private control of strategic infrastructure.

Elon Musk has contributed more than $276 million since July to Republican political causes ahead of the United States midterm elections on 3 November. Meanwhile, US Secretary of State Marco Rubio has said decisions over Ukraine’s access to SpaceX satellite communications rest with the company rather than the White House. Both developments demonstrate how private technological and financial resources can influence decisions traditionally associated with government.

For journalist Gil Durán, author of The Nerd Reich: Silicon Valley Fascism and the War on Democracy, published by Avid Reader Press in August 2026, the issue extends beyond campaign donations. In a recent interview, he argued that a group of Silicon Valley investors is using its financial influence and control of technology to challenge the authority of elected governments.

“We’re at a decisive stage of that race,” Durán said when asked about the contest between technology and democracy described by venture capitalist Peter Thiel. His argument is that wealth alone no longer satisfies some of the industry’s most influential figures; they also want a direct role in determining how societies are governed.

The ideological origins of billionaire power

Durán places Thiel at the centre of this movement. In a 2009 essay, The Education of a Libertarian, the PayPal co-founder wrote that he no longer believed freedom and democracy were compatible. He argued that technological innovation could allow individuals to escape the constraints of conventional politics.

Thiel subsequently clarified that he was not advocating disenfranchisement. His stated position was that majority rule often frustrated individual liberty. Durán, however, interprets the essay and Thiel’s subsequent political investments as evidence of a sustained interest in diminishing democratic constraints on private power.

The book also examines The Sovereign Individual, a 1997 work by James Dale Davidson and William Rees-Mogg that anticipated how digital currencies and technological change might weaken the power of nation states. Durán sees its influence in later arguments for privately organised alternatives to traditional government.

One example is The Network State, developed by entrepreneur Balaji Srinivasan. It proposes that online communities could acquire territory and eventually obtain diplomatic recognition. Advocates describe a voluntary model of political organisation; Durán regards the prospect of corporate-financed jurisdictions as a challenge to public accountability.

From venture capital to the White House

The relationship between Thiel and Vice-President JD Vance illustrates how venture capital can translate into political influence. Thiel supported Vance’s early investment career and contributed $15 million to a super PAC backing his successful 2022 Senate bid. Durán attributes much of Vance’s political ascent to that support, although voters, party endorsements and Vance’s own campaigning also shaped the result.

Musk’s latest contributions offer a more immediate example. His donations since July include $158 million to the Senate Leadership Fund and more than $76 million to America PAC. Such spending is lawful under the rules governing independent political committees, which cannot coordinate their expenditure with candidates.

Durán contends that similar pressures affect Democrats, arguing that wealthy donors can exercise influence across party lines. His criticism therefore concerns the political system’s dependence on private funding as much as any particular administration.

Technology as an instrument of strategic power

The consequences extend beyond elections. Ukraine’s dependence on satellite communications has exposed how a privately owned service can become essential to military operations. Restrictions affecting Starlink-related services have prompted competing accounts from US officials and SpaceX over responsibility for the decision. Rubio’s latest remarks point towards commercial control, while earlier reporting attributed the decision to Washington.

Artificial intelligence raises comparable questions of ownership and oversight. Durán argues that investors promoting transformative AI may also seek regulatory conditions that protect their substantial financial commitments. His prediction of a possible investment bubble remains a judgement, not an established outcome.

In Europe, the debate has immediate regulatory consequences. The EU’s Digital Services Act requires major online platforms to assess risks to elections and civic debate, while enforcement of important provisions of the AI Act began in August 2026. These measures address the influence of companies whose platforms and systems operate across borders.

Durán’s interpretation of Silicon Valley as a coherent anti-democratic movement remains contested. The entrepreneurs he discusses have differing interests, and their political influence does not itself establish a common plan to dismantle democratic government.

Their influence is nevertheless measurable in campaign finances, government contracts and control over infrastructure essential to national security. None of these forms of power requires holding elected office.

California's 'Wealth Tax' Could Cost the State $39 Billion

20 October 2026 at 20:50
a bear vomits out U.S. dollars against the background of the California state flag | Helistockter/Dreamstime/Midjourney/Fatima Ruiz

A proposed "wealth tax" on California's billionaires could backfire and cost the state tens of billions of dollars in the long run.

If the proposed tax drives wealthier residents out of the state, California could end up losing between $1 billion and $3.5 billion annually in income taxes, according to a working paper published this week. A pair of researchers at Stanford University warn that the state could end up losing an estimated $39 billion because of the consequences of the wealth tax.

"These findings suggest that the Billionaire Tax Act will not fulfill the primary functions for which it was designed," write researchers Benjamin Jaros and Joshua Rauh.

Voters in California will decide next month whether to impose the one-time, 5 percent tax when they vote on Proposition 40. The ballot measure is dividing Democrats—Gov. Gavin Newsom opposes it, while progressive Rep. Ro Khanna (D–Calif.) claims it is the "most important ballot initiative in America and a fight for the soul of our party."

And it's already spurring some billionaires to flee the state—including venture capitalist Peter Thiel and Google co-founder Larry Page. Including those two, the seven billionaires who have publicly said they are leaving the state represent more than $539 billion of the nearly $1.9 trillion aggregate net worth of California's billionaires, the researchers note.

With other departures likely happening more quietly, the new study estimates that the tax will generate about $30 billion, a far cry from the $100 billion that the tax's supporters expect. The "behavioral response" from billionaires in California "has eroded most of the projected tax base," write Jaros and Rauh.

That's still a pretty big pot of revenue. In the long run, however, the state is likely to lose out.

After running 100,000 simulations using different assumptions, the two researchers report that "85 percent of plausible outcomes produce a negative" result in state revenue.

Other recent experiments with special taxes on wealth have backfired in similar ways. In response to a new wealth tax in Washington State, Jeff Bezos relocated to Florida, and iconic Seattle brand Starbucks shifted more of its corporate headquarters to Tennessee. Studies have shown that a "millionaires tax" in Massachusetts contributed to wealth moving out of that state.

Capital is always mobile, despite the best efforts of politicians. And if you were a billionaire living in California, why would you stick around?

Polls show voters are narrowly divided over Proposition 40. A Politico poll published earlier this month showed 46 percent of voters plan to vote for the measure, while 43 percent oppose it. Voters were similarly divided when asked if they expected it to pass or not.

The post California's 'Wealth Tax' Could Cost the State $39 Billion appeared first on Reason Magazine.

Elon Musk says money will be 'irrelevant' if his vision of a multiplanetary future comes true

20 October 2026 at 17:03
Elon Musk is pictured.
Elon Musk says his descendants might have a "tiny fraction" of his wealth.

Jae C. Hong/AP

  • Elon Musk says "money becomes irrelevant" if he's right about what the future holds.
  • The Tesla and SpaceX CEO said AI and robots will be better than humans at everything.
  • The world's richest man said his fortune could be virtually gone within a few generations.

Elon Musk says money could be meaningless one day, and the vast majority of his wealth will likely be gone within a few generations.

The world's richest person predicted that advances in robotics and space travel will create a multiplanetary economy, at which point "money becomes irrelevant" and "conventional currency will not matter."

Value will be measured in mass and power or energy, he continued. "So that's my guess," he said, adding that it seemed a "pretty obvious" outcome to him.

The Tesla and SpaceX CEO shared his vision of a post-money future and his outlook on his personal fortune with his biographer, Walter Isaacson, on "The Builders" podcast. The interview was taped in early August and released on Tuesday.

Musk recommended earlier this year that people stop saving for retirement in 10 or 20 years, as he expects AI and other technologies to supercharge productivity and usher in an age of abundance where people can have "whatever stuff they want."

He made a similar argument to Isaacson, saying "there won't be anything that humans can do that the AI and the robots can't do better." People will likely turn to hobbies like growing their own fruits and vegetables, or making art, to find purpose in life, he said.

Musk's plans for his own money

Musk, who briefly became a trillionaire after SpaceX went public in June, topped the Bloomberg Billionaire Index at Monday's close with an estimated $920 billion net worth.

He defended his personal wealth on the podcast, saying that it mostly reflects his ownership of SpaceX and Tesla, and he needs large stakes in both companies to retain voting power and remain in charge.

His fortune is "going to be taxed quite heavily," Musk said, adding that there isn't "some magical way to avoid taxes" because "if there were, I would know about it."

Musk said his wealth will "get whittled down and a few generations from now — if money still matters, which I don't think it will — my descendants would have a tiny fraction of what I have."

He also outlined what he hopes his foundation will spend his fortune on after he's gone: "Continue the goals. Make life multi-planetary, extend consciousness to the stars, improve sustainable energy on Earth."

Notably, Musk pledged on Monday to gift a share of SpaceX to every child in the US next year, a contribution worth over $10 billion today.

His announcement has won praise from President Donald Trump, who hailed Musk's "incredible generosity" and labeled him a "legendary friend" in an X post.

Musk teased a charitable pledge in late July after Nobel economist Daron Acemoglu publicly challenged him over his prediction of a post-money future.

"If money won't matter in 2036, why don't you pledge to donate your current wealth of approximately $1 trillion to charity no later than 2036," Acemoglu wrote on X.

"I am actually going to do something along these lines!" Musk responded.

Read the original article on Business Insider

Trump praises Elon Musk's 'incredible generosity' over $10 billion SpaceX stock pledge for kids

20 October 2026 at 11:51
Donald Trump holds a document beside Elon Musk in front of a White House backdrop and U.S. flag.
President Donald Trump praised Elon Musk's pledge to give SpaceX shares to children through Trump Accounts.

Kent NISHIMURA / AFP via Getty Images

  • Trump praised Elon Musk's plan to give one SpaceX share to every child in America next year.
  • The pledge could be worth about $10.6 billion at SpaceX's current price.
  • Musk and Trump have a rocky relationship, but appear to be back on the same page in recent months.

Elon Musk’s pledge to give every child in America a share in SpaceX has already paid one dividend: effusive praise from President Donald Trump.

"A BIG THANK YOU to our legendary friend, Elon Musk," Trump wrote Monday, calling the proposed gift an act of "incredible generosity."

He said the shares would go to children through Trump Accounts, the investment accounts created under his administration.

A BIG THANK YOU to our legendary friend, @ElonMusk, for his incredible generosity in giving SpaceX Stock to millions of American children through TRUMP ACCOUNTS! This is exactly what was envisioned when we created TRUMP ACCOUNTS — Bringing together the GREAT PRIVATE SECTOR, Elon and so many more, to invest in our children, by far our greatest and most important asset, and give every American Child a piece of the American Dream. Thank you Elon! President DONALD J. TRUMP

— Donald J. Trump (@realDonaldTrump) October 19, 2026

It was an enthusiastic response to Musk's commitment earlier in the day. "Next year, I will give one of my SpaceX shares to every kid in America," he wrote on X. "This will be the first of many."

Significantly, Trump shared his praise in a post on X, a platform he has eschewed in recent years since launching his social network, Truth Social.

Trump was barred from Twitter in 2021 after the Capitol riot, and while his account was reinstated after Musk bought and renamed the platform, the president has been an infrequent poster since then.

Musk's $10 billion donation promise

There are roughly 72 million children in the US, and SpaceX stock closed Monday at about $148 a share. At that price, one share apiece would put the gift's value at around $10.6 billion. Its eventual value will depend on SpaceX’s share price at the time the stock is transferred.

Trump has been waiting for this particular contribution. In July, he said he thought Musk would donate SpaceX stock to Trump Accounts, even as he referred to their very public falling-out as a "little dispute."

SpaceX President Gwynne Shotwell and her husband had already pledged shares for more than 2 million children’s accounts.

Musk and Trump have a turbulent relationship. The world's richest man was one of Trump's biggest financial backers in the 2024 election, spending more than $200 million to help elect him. The pair were close enough during the first few months of Trump's return to the White House for Musk to earn the nickname "First Buddy."

He then became the public face of the administration's Department of Government Efficiency before leaving in May 2025.

After leaving DOGE, Musk was highly critical of the president's "Big, Beautiful Bill," calling it a "disgusting abomination."

Musk has recently resumed spending heavily to shape Republican politics ahead of the midterms. Since July, he has given about $276 million, including $158 million to the Senate Leadership Fund; the super PAC later sent matching sums to a Texas group supporting Attorney General Ken Paxton's Senate campaign.

Lately, Musk has been seen publicly with Trump several times; the president awarded him the National Medal of Science earlier this month, and when China's leader Xi Jinping visited the US in September, he sat at the president's table at a state dinner.

Details are still unclear on Musk's SpaceX share giveaway

If confirmed, Musk would join other wealthy backers of the program. Michael and Susan Dell contributed $6.25 billion to the accounts of 25 million children, with the gifts directed first to children in lower-income ZIP codes. Musk’s donation would be larger than the Dells' barring a significant drop in SpaceX's share price.

For now, it remains a promise. Musk has not detailed who would qualify as a child under his plan, how he would get shares into every eligible account, or when the transfers would happen next year.

For Trump, the promise brings one of the country’s wealthiest business leaders behind a program he has promoted. "This is exactly what was envisioned when we created TRUMP ACCOUNTS," he wrote Monday.

Read the original article on Business Insider

Elon Musk says he'll give every child in America a share in SpaceX

19 October 2026 at 09:43
Elon Musk stands in a suit and tie amid a blurred outdoor crowd.
Elon Musk announced on X that he intends to give every child in America a SpaceX share.

Finn Gomez/Getty Images

  • Elon Musk says he'll give a SpaceX share to every child in the US next year.
  • That would be a $10.5 billion gift based on SpaceX's stock price and roughly 72 million recipients.
  • Musk said this would be the "first of many" SpaceX share giveaways but didn't offer further details.

Elon Musk says he'll give every child in the US a piece of his space company, a gift worth around $10.5 billion today.

"Next year, I will give one of my SpaceX shares to every kid in America," Musk wrote in an early Monday post on X. "This will be the first of many."

Next year, I will give one of my SpaceX shares to every kid in America. This will be the first of many.

— Elon Musk (@elonmusk) October 19, 2026

There are roughly 72 million children in the US based on 2025 census data, and SpaceX stock closed at $146 on Friday. If Musk donated 72 million shares right now they would be worth around $10.5 billion.

Musk didn't provide any further details on how the giveaway would work, such as eligibility criteria or specific timing, or whether the shares will be transferred to Trump Accounts.

The Tesla and SpaceX CEO is the world's richest person, with an estimated net worth of $904 billion as of Friday's close, per the Bloomberg Billionaires Index.

SpaceX — the company behind Falcon rockets, Starship launch vehicles, Starlink satellites, the AI chatbot Grok, and X — went public this summer and has a market capitalization of about $2 trillion.

Excluding restricted shares and options, Musk owns 4.77 billion SpaceX shares for about a 36% stake, worth just under $700 billion at Friday's close. The rest of his fortune largely comprises his stakes in his other companies, including Tesla, Neuralink, and The Boring Company.

Donating 72 million shares would reduce Musk's number of SpaceX shares by 1.5%. If, as indicated in his X post, he follows that up with further giveaways, his stake could shrink significantly.

Musk's pledge is part of a broader trend of gifting shares to America's children, aimed at ensuring they all own a piece of the stock market and reap its gains over time, and benefit from a lifetime of compounding wealth.

The Trump administration launched Trump Accounts — tax-advantaged investment accounts — for eligible children this summer, with those born between 2025 and 2028 receiving a $1,000 federal seed deposit. Numerous companies have agreed to contribute to them as well.

Michael and Susan Dell contributed $250 to 25 million American children's Trump Accounts earlier this month, a gift totaling $6.25 billion that was allocated first to those in the lowest-income ZIP codes.

SpaceX President Gwynne Shotwell and her husband pledged in July to give shares of SpaceX to more than 2 million children.

Musk shared his SpaceX gift idea after Anthropic pledged to commit 5% of its shares to a public benefit fund.

"I recommend giving shares directly to the public," he replied on X. "This is what I will be doing."

Another X user described Anthropic and Musk's pledges as "the beginning of universal basic income." Musk corrected him, writing *universal high income."

Musk has predicted that advances in AI, robotics, and other technologies will usher in an age of abundance in which everyone can have "whatever stuff they want."

He's recommended people stop saving for retirement in 10 or 20 years as their nest eggs will be "irrelevant," and has proposed government checks for all as the best response to job losses from AI.

Correction: October 19, 2026 — An earlier version of this story incorrectly described SpaceX as a private company. It went public in June 2026.

Read the original article on Business Insider

Singer Ed Sheeran says his ‘heart broken’ by Gaza devastation, addresses Macklemore controversy

21 September 2026 at 17:16
Before performing in Philadelphia on Saturday, Sheeran said the devastation & loss of civilians’ lives, children’s lives caused by Israel is 'catastrophic, unjustifiable and disproportionate.” and the“systemic injustice” in the West Bank could not be ignored

An analysis of tax forms by The Intercept show Kraft’s charity and LLC have donated to Friends of the IDF and AIPAC’s super PAC.

20 September 2026 at 19:20
An analysis of tax forms by The Intercept show Kraft’s charity and LLC have donated to Friends of the IDF, AIPAC’s super PAC, and to a host of pro-Israel advocacy groups that attack critics of Israel and have defended Israel against mounting evidence of its ongoing genocide of Palestinians in Gaza.

Meta wants to build a $50 billion data center in Louisiana

11 September 2026 at 18:32

Meta wants to build one of the largest data centers in the world in rural Louisiana. 

The facility, known as Hyperion, is being built to train and operate the artificial intelligence systems behind Meta’s products. What began as a $10 billion proposal has since ballooned into a more than $50 billion development spanning nearly 10 million square feet and roughly 3,650 acres. At full scale, Hyperion is expected to require 5 gigawatts of computing capacity, making it the largest data center in Meta’s global fleet and one of the largest ever built. According to Meta, the project is expected to employ around 7,500 workers during peak construction and support 1,000 permanent jobs once operational.

For residents of Richland Parish, the arrival of Meta has brought both desperately needed jobs and profound uncertainty about what the project will mean for the community. The enormous facility is being constructed on former farmland and will require an equally immense network of infrastructure to support it. In nearby Rayville, many residents view Meta as an economic lifeline after decades of limited employment opportunities, with local families securing jobs that pay far more than the parish’s median income. But the influx of highly paid, out-of-town workers has also driven up rent and the cost of living as landlords and businesses increasingly orient themselves toward Meta employees. Landlords routinely raise the rent of low-income housing in order to price out local tenants in favor of contractors, forcing residents to move out of the area to afford housing.

Bringing Meta to Richland Parish

Richland Parish is a rural stretch of northeast Louisiana dominated by flat, fertile land rich with cotton, soybeans, corn, and rice. The parish’s economy has historically revolved around large-scale, row-crop farming, but declining farm incomes and population loss has strained the region in recent generations. Richland’s employment rate sits at 49.9%, 9.4% below the already dismal state average, with a median income of $53,544. A total of 36% of the 20,000 person population is Black. Rayville, the parish seat, is 80% Black. For decades, Richland has been far removed from the state’s economic centers of New Orleans and Baton Rouge, receiving little of the investment that has flowed into Louisiana’s larger cities.

That changed in January 2024, when Entergy Louisiana, the state’s monopoly power company, began a year-long courting ritual to bring Meta’s largest data center to the impoverished parish. Following months of backdoor deals and nondisclosure agreements, Meta announced plans to build a $10 billion, 4-million-square-foot data center on a 2,250-acre flood plain. In July 2026, Meta expanded the project, committing more than $50 billion and nearly 10 million square feet to what may become the largest data center in the company’s fleet and home to its massive Hyperion AI training cluster.

Both Meta and Entergy have been quick to dismiss community concerns, with state officials claiming that “whatever comes out of it will be better than the mostly fallow farmland that was there.” Meta likewise touts a laundry list of benefits it promises to bring to the area, most notably permanent jobs and increased tax revenue. The company now claims that the expanded Hyperion AI center will create more than 1,000 permanent jobs, alongside thousands of temporary construction jobs.

But Meta has refused to provide the evidence behind those projections. On August 12, the Louisiana Public Service Commission voted 3–1 to overturn the recommendation of an administrative law judge that Meta turn over information substantiating its projected job creation, economic impact, and electricity demand, effectively shielding the company’s claims from public scrutiny.

Meta’s empty promises of economic growth

The public’s skepticism is warranted. Data centers routinely generate thousands of temporary construction jobs while creating only a fraction as many permanent positions once construction ends. Meta’s projects in Texas and Oklahoma, for example, are expected to leave only around 100 operational jobs each after thousands of construction workers leave. QTS similarly estimates that a data center campus in York County, North Carolina will produce roughly 1,000 construction jobs but only about 100 permanent onsite positions. Even Hyperion’s original proposal called for roughly 5,000 construction workers but only 500 permanent operational employees. None of these figures guarantee that the permanent positions will go to Richland Parish residents. Meta has offered assurances about local hiring, but there is no binding commitment requiring the company to employ local workers.

Meta also claims the data center will bring tens of millions of dollars in tax revenue to Richland Parish, an argument it bolsters by pointing to the 2,000% increase in sales-tax totals since construction began – $50,000 of which has funded bonuses for some local schoolteachers. But that windfall is largely a product of the construction boom itself, not a sustainable source of revenue generated by the completed data center. The teacher bonuses are distributed through Richland Parish’s longstanding one-cent sales-tax program, which provides annual “13th checks” to eligible school employees. As those construction workers spend money in the parish, that pool has temporarily grown; once construction ends, so will much of the revenue feeding it. The result is a temporary infusion of money that can obscure the longer-term fiscal consequences of the project. When the construction boom ends, Richland Parish will be left with the costs of a massive industrial project, and fewer public resources to pay for them.

Cementing Louisiana’s dependence on fossil fuels amid environmental devastation

The environmental impact of the Meta data center could also be deadly for residents of Richland Parish and Louisiana as a whole. The Hyperion AI data center is expected to consume roughly half of the state’s electrical capacity – approximately seven times the energy consumed by the entire city of New Orleans – placing enormous new demands on Entergy’s already overburdened power grid. Louisiana residents know what a fragile electrical system can mean in a disaster. After Hurricane Katrina, Entergy’s restoration efforts took 42 days to complete across its service territory. In 2021, Hurricane Ida left nearly 950,000 customers without power after an Entergy tower fell into the Mississippi River, a disaster that required 15 days of restoration work just to bring more than 90% of affected customers back online.

Rather than address these vulnerabilities, Entergy’s proposed solution to Hyperion’s unprecedented energy demands is to build an entirely new fossil-fuel energy infrastructure around the data center. The company plans to construct ten natural-gas power plants, including seven new facilities capable of generating roughly 5.2 gigawatts of electricity, alongside new transmission lines and a massive 500-kilovolt substation. Meta, Entergy, and the Louisiana state government are working to present these projects as investments that will strengthen Louisiana’s electrical grid and improve reliability for ordinary customers.

Louisiana is being asked to construct an enormous new fossil-fuel-based energy system so that a single private corporation can consume an unprecedented share of its electricity. More generation may increase capacity, but it does not eliminate the physical vulnerabilities that have repeatedly left Louisiana residents without power after hurricanes. Instead, the state is doubling down on a centralized, fossil-fuel-dependent grid whose infrastructure will remain vulnerable to the same storms that have already decimated Louisiana’s communities.

Entergy’s catastrophic deal with Meta has arrived as Louisiana is already on the front lines of an environmental crisis. The state has lost more than 2,000 square miles of coastal land since 1932 and continues to lose more than 16 square miles each year. The state has experienced 31 billion-dollar weather and climate disasters since 2018, leaving communities to repeatedly rebuild from hurricanes, flooding, and extreme weather. Meanwhile, along the Mississippi River between Baton Rouge and New Orleans, the area known as “Cancer Alley” contains a dense concentration of petrochemical and chemical facilities, exposing surrounding communities to significant air pollution and toxic emissions which have resulted in a cancer rate fifty times higher than the national average.

People of Louisiana reject corporate profiteering

These environmental pressures are only compounded by an affordability crisis. In 2024, 49% of Louisiana households – nearly 900,000 – were either living in poverty or earning too little to afford basic necessities. A basic survival budget costs an estimated $30,708 a year for a single adult and $81,912 for a family of four, before accounting for savings or emergencies such as climate disaster. All the while, the state is being asked to absorb another enormous industrial project while nearly half of its households are already struggling financially and its communities confront environmental catastrophe.

Read more: A massive AI data center transforms rural Utah into a national flashpoint

Community opposition to the Hyperion project reflects a growing recognition that the promised benefits of corporate development cannot be separated from the costs that residents will be asked to bear. The fight is not simply over one data center, but over who gets to determine what Louisiana’s resources are used for and whose interests development is meant to serve. For generations, Louisiana communities have been told that jobs and investment require accepting pollution, environmental destruction, and the transformation of local resources into private profit.

Hyperion offers another version of the same bargain: enormous amounts of Louisiana’s land, electricity, water, and public infrastructure would be redirected toward the interests of one of the world’s largest technology companies. And the resistance to that bargain extends far beyond Richland Parish. Hundreds of Louisianans have mobilized around Public Service Commission meetings, traveling to the capital to demand that regulators prioritize the people who will bear the costs of Meta and Entergy’s expansion. Their concerns have repeatedly been dismissed or overridden by a majority of commissioners, even as the commission has approved billions of dollars in new generation and transmission infrastructure for the project. A 2024 investigation by the Louisiana Illuminator and Floodlight found that nearly 43% of campaign contributions to Louisiana utility commissioners over the previous decade came from utilities, energy-related businesses, and their attorneys and lobbyists, with Entergy Louisiana and its executives and family members contributing roughly $350,000.

The resistance emerging across Louisiana is more than a battle over a single data center. It is a decisive stand for the right of Louisianians to determine their own future, rather than surrender it to corporate interests. This is a battle for the future of working people everywhere, and the people have vowed to keep fighting. 

Kieran Spencer is a New Orleans-based historian and organizer.

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