USA, Louisiana, Rapides Parish: Cleco is planning a new 756MW natural gas power plant that could help supply Applied Digital’s planned $3.6 B data centre in Rapides Parish.
The facility could require up to 430 MW of electricity, making it the largest single load ever served by Cleco Power. The project reflects the growing pressure that large-scale data centres are placing on generation, transmission and substation infrastructure.
Applied Digital would pay the full cost of the grid infrastructure needed to connect the site, including new substations, upgrades to existing substations and transmission improvements.
The company would also fund a separate 10-year capacity agreement, allowing Cleco to secure additional power, including 370 MW from the Tenaska Frontier Generating Station in Texas.
Cleco said the proposed gas plant is needed regardless of the data centre, as older generating units are expected to retire and the utility will need additional reliable capacity. The plant would serve all Cleco customers and is expected to operate for about 30 years.
According to the utility, adding Applied Digital as a major customer could reduce the financial burden on existing customers. Cleco estimates that Applied Digital will contribute nearly $3 B over 15 years in non-fuel charges covering generation, transmission, storm recovery and other costs.
The utility also projects more than $700 M in net benefits to existing customers over the same period.
Source: 1012 Industry Report
