Lawsuit challenges Landry-backed ‘lightning’ speed approval for data center power projects

A group of Louisiana landowners and community advocates are suing the Louisiana Public Service Commission over its procedure to fast-track large utility projects in the name of economic development. It comes as regulators are poised to give expedited approval to a power project linked to the massive $50 billion Meta Hyperion data center campus in Richland Parish.   

The lawsuit, filed Monday with a state court in Baton Rouge, lists the Louisiana Landowners Coalition, Louisiana Citizen Advocacy Group and Save My Louisiana as plaintiffs.

The plaintiffs claim the Public Service Commission violated rules in the Louisiana Constitution by not giving public notice before it adopted the “Lightning Speed Initiative” in December 2025. The policy change speeds up the regulatory approval process for utility projects linked to major investment in the state.

According to the lawsuit, the agenda for the meeting where the initiative was approved did not adequately explain the policy changes commissioners were considering, and the revised rules have never been placed “in the books.”

“The Louisiana Constitution requires the Public Service Commission to be transparent with the public when it tries to change its rules. It didn’t do that here,” William Most, a New Orleans attorney representing the plaintiffs, said in an interview Monday.

The Public Service Commission’s procedural change followed an executive order from Gov. Jeff Landry, issued in September 2025. It directed governmental bodies to ensure certain large-scale economic development projects earmarked as state priorities “receive focused attention and coordinated support across state government.” 

At the time, the governor said the existing regulatory approval process for major utility upgrades, which could take several months, put Louisiana at a distinct disadvantage for attracting major business investment to the state. 

Landry has long been bullish on data center development in Louisiana, despite growing bipartisan skepticism and voter opposition over the projects. The governor recently called for relabeling data centers as “digital factories.” 

Most said the Lightning Speed Initiative keeps “everyday” utility customers out of the loop on decisions that could impact their monthly bills.   

“Generally, utilities have to show their work to the [Public Service] Commission that they are seeking low-cost options for projects, and that’s an important requirement to keep electricity rates low for ratepayers,” he said. “The Lightning Directive allows some utilities to skip that in certain contexts.”

Entergy Louisiana has submitted an application to state regulators to build around $14 billion in energy infrastructure for Meta Hyperion, though many of its details have been kept confidential. Such documents can be kept under seal or redacted under PSC rules when commissioners deem they contain “sensitive” information. 

The plan has been the subject of challenges from groups such as the Alliance for Affordable Energy and Union of Concerned Scientists, which have submitted testimony to the Public Service Commission alleging lack of transparency from Meta and Entergy. 

The commission is scheduled to consider Entergy’s application at its Dec. 8 meeting. 

Meta and Entergy have said Louisiana utility customers will not bear the costs of powering the data center. Their respective leaders signed ratepayer protection pledges in March at the White House, and Landry issued another executive order in June in response to growing concerns that data centers planned for Louisiana would lead to higher utility bills.

Critics of the pledges and executive order have pointed out they are not legally binding, meaning average utility consumers could still be forced to foot the costs of powering data centers in Louisiana.

The groups behind the lawsuit share the common thread of private property rights. 

The Louisiana Landowners Coalition was founded by LaSalle Parish cattle farmer Dustin McAnn specifically to oppose Entergy’s use of eminent domain to acquire property to provide power to the Meta Hyperion data center campus. Save My Louisiana was launched by property owners opposed to eminent domain for the purposes of carbon sequestration, and the Louisiana Citizen Advocacy Group is an independent group chiefly known for its conservative constitutional stances.    

Most has also sent a letter on behalf of the consumer nonprofit Alliance for Affordable Energy to the Public Service Commission’s executive council, Kathryn Bowman, with an argument similar to the one he made in the lawsuit. The alliance is not involved in the case. 

In a written response to Most’s letter, Bowman said commissioners did not violate its rulemaking procedures when it adopted the Lightning Directive.  

“The utility still bears the burden of proof throughout the proceeding that the generation is in the public interest and is at the lowest reasonable costs,” Bowman said in the letter.

She also maintains the vote on the policy change was “properly noticed” on the commission’s agenda, and that public comment was allowed at the meeting when it was approved.