Louisiana Digital Factory Standards
Under Governor Jeff Landry’s leadership, Louisiana has established clear requirements for digital factory investments receiving state incentives. The Ratepayer & Community Protection Framework ensures major projects strengthen Louisiana while protecting families, businesses, communities and state resources.
To participate in the Data Center Sales and Use Tax Exemption, companies must demonstrate commitments to:
- Protect Louisiana ratepayers from project-related cost shifts
- Strengthen long-term electric grid reliability
- Invest in Louisiana’s workforce and communities
- Contribute meaningfully to local tax bases
- Protect Louisiana’s natural resources
- Support community investment and Louisiana’s innovation economy
- Maintain transparency and accountability throughout the life of the project
Louisiana is taking a proactive approach to growth by establishing these protections upfront and holding participating companies accountable for delivering on their commitments.
Digital Factories Centers: Myth vs Fact
| Myth | Fact |
|---|---|
| MYTH: Digital factories raise costs, overload the grid, and use too much water. | FACT: Digital factories are designed for reliability and efficiency. Under Governor Landry’s Executive Order, large-load customers must fund the added power, transmission and infrastructure needed to serve their projects, helping protect existing customers from cost shifts. Projects are approved only after grid stability is verified and long-term reliability planning is addressed. Utilizes advanced cooling systems that significantly reduce water use. |
| MYTH: Digital factories don’t create jobs; they only help big tech and are pushed on communities. | FACT: Digital factories create jobs, support daily life, and require local approval. Governor Landry’s administration ensures development happens with communities, not to them. Digital factories generate thousands of construction jobs and hundreds of high-paying permanent roles. They power products and tools used by people and small businesses every day. Projects move forward only after local zoning, environmental review, and public input. Local governments retain authority over land use. |
| MYTH: Digital factories receive tax breaks, take up large amounts of land and give little back to communities. | FACT: Digital factories deliver long-term local value. They are built on land already zoned for commercial use. They remain on local tax rolls for decades, helping to fund schools, law enforcement, community services, and infrastructure. Governor Landry’s Executive Order calls for projects to support Louisiana communities through workforce development, STEM education, digital literacy, SI training, startup engagement and local partnerships. They create high-wage jobs and generate returns that exceed any initial incentives. |
| MYTH: Digital factories bring noise and pollution to communities. | FACT: Digital factories operate under strict local requirements. They must comply with zoning laws, meet environmental permit standards, and adhere to local noise regulations at every stage. |
Moving at the Speed of Business
Growing Tech Sector
Louisiana is building the future—faster, smarter, and together. We are connecting visionaries, builders, and industry leaders with the resources, partnerships, and momentum they need to thrive. From breakthrough technologies to transformative collaborations, we’re powering the next generation of growth in Louisiana and beyond.
