404 Media

2025-07-07 19:28:07

Polymarket Gamblers Go to War Over Whether Zelenskyy Wore a Suit

Polymarket, an online betting marketplace that bills itself as the future of news, can’t decide whether or not Ukrainian president Volodomyr Zelenskyy wore a suit during a recent appearance in Europe. The gambling site is set to make a final judgement about the question in a few hours and more than $160 million in crypto is riding on it.

Polymarket is a gambling website where users predict the outcome of binary events. It gained prominence in the runup to the 2024 election, signed an exclusivity deal with X in June, and sees itself not just as an online betting parlor, but as an arbiter of truth. Its founder, Shayne Coplan, thinks that the future of media belongs to a website made for degenerate gamblers to make silly bets.
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And yet this arbiter of truth had trouble figuring out if Zelenskyy wore a suit at the end of June during a NATO summit. The bet, started on May 22, is simple: “Will Zelenskyy wear a suit before July?” The answer, it turns out, is pretty hard. When Zelenskyy showed up at a NATO summit wearing a tailored jacket and a button up shirt, a stark contrast to his more casual military style garb, a community-run Polymarket account posted, “President Zelenskyy in a suit last night.”

President Zelenskyy in a suit last night pic.twitter.com/Uo3Rhuzkq1
— Polymarket Intel (@PolymarketIntel) June 25, 2025

But people who bet “no” cried foul, complaining that he wasn’t actually wearing a suit on social media and in Polymarket hosted chat rooms. Zelenskyy’s “suit” was an all black get-up with no tie and four cargo-style pockets, some pointed out. The jacket was suit shaped, but it didn’t quite fit everyone’s definition of formal dress. And, perhaps most telling on the side of “not an actual suit,” he was wearing tennis shoes.

According to the “rules” underneath the bet, the market would resolve as a “yes” if the Ukrainian president is photographed or videotaped wearing a suit. “The resolution will be the consensus of credible reporting.”

All the credible reporting around the scene described Zelenskyy’s outfit as a suit. He’s known for wearing military style outfits so the sudden formal outfit generated a lot of headlines. Reuters said the outfit was “suit-style,” a Fox News pundit joked that Trump won’t recognize Zelenskyy because he’s wearing a suit, and the NY Post said that he ditched a “T-shirt for a suit.” There were many more media outlets that noted the fashion upgrade.

At first, the betting market agreed with them. It resolved the bet as a “yes,” but the site’s “no” holders flagged the issue for a disputed resolution. Polymarket kicked the question to a third party, which considered the issue and changed the outcome to a “no.”

Some disputes on Polymarket, like this one, are resolved through a blockchain based third party system called UMA. In this system, the question of how to resolve a disputed market gets thrown to people who hold UMA tokens and who are, in theory, impartial. Holding a UMA token buys you a voice in the debate, which plays out in Discord servers and can be watched by the public.

On social media and in Discord, people are accusing UMA token holders of placing side bets on the suit question and attempting to manipulate the market so one side wins. The Discord conversation is full of people claiming UMA has failed and that Polymarket’s administrators are manipulating it directly.

“At the time of this clarification, 09:33am ET July 01, a consensus of credible reporting has not confirmed that Zelenskyy has worn a suit,” Polymarket administrators wrote below the bet. It did not elaborate on what amounted to a “consensus of credible reporting” and it didn’t return 404 Media’s request for a comment on the issue.

Unhappy “yes” betters disputed this resolution and it’s still in review at the time of publication. According to a timer on the bet, Polymarket will issue a final answer to the question by the end of the day.

So. Is it a suit or isn’t it? According to menswear expert and prolific fashion poster Derek Guy, it’s both. “If I were writing an article about Zelenskyy's dress, I would call it a suit because it's the shortest, easiest way to describe his outfit without getting into the history of men's tailoring. But I would also recognize this is not what most people recognize as a suit,” Guy said in a thread about the controversy on X.

The suit, then, is in the eye of the beholder. The problem is that people have bet more than $160 million on the outcome of the question.

Zelensky ditches T-shirt for a suit for sit-down meeting with President Trump

“I thank Mr President, I thank the United States,” Zelensky said.

^{Anthony Blair (New York Post)}

404 Media

2025-07-07 13:16:50

The Open-Source Software Saving the Internet From AI Bot Scrapers

For someone who says she is fighting AI bot scrapers just in her free time, Xe Iaso seems to be putting up an impressive fight. Since she launched it in January, Anubis, a “program is designed to help protect the small internet from the endless storm of requests that flood in from AI companies,” has been downloaded nearly 200,000 times, and is being used by notable organizations including GNOME, the popular open-source desktop environment for Linux, FFmpeg, the open-source software project for handling video and other media, and UNESCO, the United Nations organization for educations, science, and culture.

Iaso decided to develop Anubis after discovering that her own Git server was struggling with AI scrapers, bots that crawl the web hoovering up anything that can be used for the training data that power AI models. Like many libraries, archives, and other small organizations, Iaso discovered her Git server was getting slammed only when it stopped working.

“I wasn't able to load it in my browser. I thought, huh, that's strange,” Iaso told me on a call. “So I looked at the logs and I figured out that it's restarted about 500 times in the last two days. So I looked in the access logs and I saw that [an] Amazon [bot] was clicking on every single link.”

Iaso knew it was an Amazon bot because it self identified as such. She said she considered withdrawing the Git server from the open web but that because she wants to keep some of the source code hosted there open to the public, she tried to stop the Amazon bot instead.

“I tried some things that I can’t admit in a recorded environment. None of them worked. So I had a bad idea,” she said. “I implemented some code. I put it up on GitHub in an experimental project dumping ground, and then the GNOME desktop environment started using it as a Hail Mary. And that's about when I knew that I had something on my hands.”

There are several ways people and organizations are trying to stop bots at the moment. Historically, robots.txt, a file sites could use to tell automated tools not to scrape, was a respected and sufficient norm for this purpose, but since the generative AI boom, major AI companies as well as less established companies and even individuals, often ignored it. CAPTCHAs, the little tests users take to prove they’re not a robot, aren’t great, Iaso said, because some AI bot scrapers have CAPTCHA solvers built in. Some developers have created “infinite mazes” that send AI bot scrapers from useless link to useless link, diverting them from the actual sites humans use and wasting their time. Cloudflare, the ubiquitous internet infrastructure company, has created a similar “AI labyrinth” feature to trap bots.

Iaso, who said she deals with some generative AI at her day job, told me that “from what I have learned, poisoning datasets doesn't work. It makes you feel good, but it ends up using more compute than you end up saving. I don't know the polite way to say this, but if you piss in an ocean, the ocean does not turn into piss.”

In other words, Iaso thinks that it might be fun to mess with the AI bots that are trying to mess with the internet, but in many cases it’s not practical to send them on these wild goose chases because it requires resources Cloudflare might have, but small organizations and individuals don’t.

“Anubis is an uncaptcha,” Iaso explains on her site. “It uses features of your browser to automate a lot of the work that a CAPTCHA would, and right now the main implementation is by having it run a bunch of cryptographic math with JavaScript to prove that you can run JavaScript in a way that can be validated on the server.”

Essentially, Anubis verifies that any visitor to a site is a human using a browser as opposed to a bot. One of the ways it does this is by making the browser do a type of cryptographic math with JavaScript or other subtle checks that browsers do by default but bots have to be explicitly programmed to do. This check is invisible to the user, and most browsers since 2022 are able to complete this test. In theory, bot scrapers could pretend to be users with browsers as well, but the additional computational cost of doing so on the scale of scraping the entire internet would be huge. This way, Anubis creates a computational cost that is prohibitively expensive for AI scrapers that are hitting millions and millions of sites, but marginal for an individual user who is just using the internet like a human.

Anubis is free, open source, lightweight, can be self-hosted, and can be implemented almost anywhere. It also appears to be a pretty good solution for what we’ve repeatedly reported is a widespread problem across the internet, which helps explain its popularity. But Iaso is still putting a lot of work into improving it and adding features. She told me she’s working on a non cryptographic challenge so it taxes users’ CPUs less, and also thinking about a version that doesn’t require JavaScript, which some privacy-minded disable in their browsers.

The biggest challenge in developing Anubis, Iaso said, is finding the balance.

“The balance between figuring out how to block things without people being blocked, without affecting too many people with false positives,” she said. “And also making sure that the people running the bots can't figure out what pattern they're hitting, while also letting people that are caught in the web be able to figure out what pattern they're hitting, so that they can contact the organization and get help. So that's like, you know, the standard, impossible scenario.”

Iaso has a Patreon and is also supported by sponsors on Github who use Anubis, but she said she still doesn’t have enough financial support to develop it full time. She said that if she had the funding, she’d also hire one of the main contributors to the project. Ultimately, Anubis will always need more work because it is a never ending cat and mouse game between AI bot scrapers and the people trying to stop them.

Iaso said she thinks AI companies follow her work, and that if they really want to stop her and Anubis they just need to distract her.

“If you are working at an AI company, here's how you can sabotage Anubis development as easily and quickly as possible,” she wrote on her site. “So first is quit your job, second is work for Square Enix, and third is make absolute banger stuff for Final Fantasy XIV. That’s how you can sabotage this the best.”

Developer Creates Infinite Maze That Traps AI Training Bots

"Nepenthes generates random links that always point back to itself - the crawler downloads those new links. Nepenthes happily just returns more and more lists of links pointing back to itself."

^{Jason Koebler (404 Media)}

404 Media

2025-06-25 13:00:03

Podcast: This Site Unmasks Cops With Facial Recognition

We start this week with Emanuel and Joseph’s coverage of ‘⁠FuckLAPD.com⁠’, a website that uses facial recognition to instantly reveal a LAPD officer’s name and salary. The creator has relaunched their similar tool for identifying ICE employees too. After the break, Jason tells us about a massive AI ruling that opens the way for AI companies to scrape everyone’s art. In the subscribers-only section, our regular contributor Matthew describes all the AI slop in the Iran and Israel conflict, and why it matters.
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Listen to the weekly podcast on Apple Podcasts,Spotify, or YouTube. Become a paid subscriber for access to this episode's bonus content and to power our journalism. If you become a paid subscriber, check your inbox for an email from our podcast host Transistor for a link to the subscribers-only version! You can also add that subscribers feed to your podcast app of choice and never miss an episode that way. The email should also contain the subscribers-only unlisted YouTube link for the extended video version too. It will also be in the show notes in your podcast player.
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• ⁠‘⁠⁠FuckLAPD.com⁠⁠’ Lets Anyone Use Facial Recognition to Instantly Identify Cops⁠
• ⁠Judge Rules Training AI on Authors' Books Is Legal But Pirating Them Is Not⁠
• ⁠The AI Slop Fight Between Iran and Israel⁠

The AI Slop Fight Between Iran and Israel

There’s a lack of footage from the conflict and AI-generated content is filling the void.

^{Matthew Gault (404 Media)}

404 Media

2025-06-24 13:43:47

‘FuckLAPD.com’ Lets Anyone Use Facial Recognition to Instantly Identify Cops

A new site, FuckLAPD.com, is using public records and facial recognition technology to allow anyone to identify police officers in Los Angeles they have a picture of. The tool, made by artist Kyle McDonald, is designed to help people identify cops who may otherwise try to conceal their identity, such as covering their badge or serial number.

“We deserve to know who is shooting us in the face even when they have their badge covered up,” McDonald told me when I asked if the site was made in response to police violence during the LA protests against ICE that started earlier this month. “fucklapd.com is a response to the violence of the LAPD during the recent protests against the horrific ICE raids. And more broadly—the failure of the LAPD to accomplish anything useful with over $2B in funding each year.”

“Cops covering up their badges? ID them with their faces instead,” the site, which McDonald said went live this Saturday. The tool allows users to upload an image of a police officer’s face to search over 9,000 LAPD headshots obtained via public record requests. The site says image processing happens on the device, and no photos or data are transmitted or saved on the site. “Blurry, low-resolution photos will not match,” the site says.

“fucklapd.com uses data provided by the City of Los Angeles directly to the public,” McDonald told me in an email. “This data has been provided in response to either public records requests or public records lawsuits. That means all of this information belongs to the public and is a matter of public record. fucklapd.com is not scraping any data.”

In addition to potentially identifying officers by name and serial number, FuckLAPD.com also pulls up a police officer’s salary.

“Surprisingly it [the domain name] only costs $10 a year to exercise my first amendment right to say fucklapd.com,” McDonald said.
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I tested the tools by grabbing an image of a white and bald police officer from an LAPD press conference addressing its use of force during the anti-ICE protests in Los Angeles. I uploaded the image to the site, and within a few seconds the site presented me with nine headshots of officers who could be possible matches, all of them bald white men. The first correctly identified the cop in the image I uploaded.

Clicking “view profile” under the result sent me to the Watch the Watchers site by the Stop LAPD Spying Coalition, a community group based in the Skid Row neighborhood of downtown Los Angeles. “All of the information on this website comes from records that were deliberately made public by the City of Los Angeles in response to either public records requests or public records lawsuits,” the Watch the Watchers site says. “We plan to keep refreshing this data from new public records requests as well as to add other data.” Stop LAPD Spying Coalition is not associated with FuckLAPD.com and did not endorse the site.

McDonald told me that since the site launched, it had around 50,000 visitors, but “Because the analysis happens on-device I have no way of knowing what people are using it for, except for some people who have posted screenshots to Twitter or Instagram,” he said.

In 2018 McDonald made another tool called ICEspy which used hundreds of photos of ICE employees from LinkedIn and does much the same thing as FuckLAPD.com. “This app is designed to highlight and embarrass the organization committing atrocities against refugees and immigrants to the United States,” ICEspy’s website says. That tool originally used a Microsoft API, before Microsoft restricted access to it. McDonald said on X that he recently relaunched the tool to run locally on devices. 404 Media tested ICEspy using images of ICE employees on LinkedIn to verify if the tool worked and each result was incorrect; McDonald indicated on X he was looking for others to re-scrape LinkedIn and update the database.

Over the last few months ICE officers have consistently worn masks, neck gaiters, sunglasses, and baseball caps to shield their identity while often refusing to provide their name or even confirm the agency they belong to. This includes while violently assaulting people, detaining U.S. citizens, and pointing weapons at bystanders, leaving little room for recourse or accountability against the individual agents or the agency.

ICE’s constant use of masks has created a climate where people cannot be sure that the heavily armed group of men coming towards them are really federal agents or not. In Philadelphia, a man pretended to be an ICE agent in order to rob an auto repair shop and zip tie an employee. In Brooklyn, a man posed as an immigration officer before attempting to rape a woman.

ICE claims that assaults against its officers have increased by 413 percent, and use this as the justification for covering their faces. But as Philip Bump showed in the Washington Postthere are still plenty of questions about those numbers and their accuracy. ICE says its officers’ family members have been doxed too.

Neither the LAPD or ICE responded to a request for comment.

Joseph Cox contributed reporting.

Woman says man posed as ICE agent before attempted rape in Brooklyn

A 51-year-old woman was approached by a man who said he was an ICE agent before attempting to sexually assault her.

^{Eyewitness News (ABC7 New York)}

404 Media

2025-06-24 13:00:39

This Queer Online Zine Can Only Be Read Via an Ancient Internet Protocol

Unless you’re living in a ChatGPT hype-bro bubble, it’s a pretty common sentiment these days that the internet is getting shittier. Social media algorithms have broken our brains, AI slop flows freely through Google search results like raw sewage, and tech companies keep telling us that this new status quo is not only inevitable, but Good.

Standing in stark opposition to these trends is New Session, an online literary zine accessed via the ancient-but-still-functional internet protocol Telnet.

Like any other zine, New Session features user-submitted poems, essays, and other text-based art. But the philosophy behind each of its digital pages is anything but orthodox.

“In the face of right-wing politics, climate change, a forever pandemic, and the ever-present hunger of imperialist capitalism, we have all been forced to adapt,” reads the intro to New Session’s third issue, titled Adaptations, which was released earlier this month. “Both you and this issue will change with each viewing. Select a story by pressing the key associated with it in the index. Read it again. Come back to it tomorrow. Is it the same? Are you?”

The digital zine is accessibleon the web via a browser-based Telnet client, or if you’re a purist like me, via the command line. As the intro promises, each text piece changes—adapts—depending on various conditions, like what time of day you access it or how many times you’ve viewed it. Some pieces change every few minutes, while others update every time a user looks at it, like gazing at fish inside a digital aquarium.

How New Session looks on Telnet. Images courtesy Cara Esten Hurtle

Once logged in, the zine’s main menu lists each piece along with the conditions that cause it to change. For example, Natasja Kisstemaker’s “Sanctuary” changes with every viewing, based on the current weather. “Signature,” by Kaia Peacock, updates every time you press a key, slowly revealing more of the piece when you type a letter contained in the text—like a word puzzle on Wheel of Fortune.

Cara Esten Hurtle, an artist and software engineer based in the Bay Area, co-founded New Session in 2021 along with Lo Ferris, while searching for something to do with her collection of retro computers during the early days of the COVID-19 pandemic.

“I realized I’d been carrying around a lot of old computers, and I thought it would be cool to be able to do modern stuff on these things,” Hurtle told 404 Media. “I wanted to make something that was broadly usable across every computer that had ever been made. I wanted to be like, yeah, you can run this on a 1991 Thinkpad someone threw away, or you could run it on your modern laptop.”

If you’re of a certain age, you might remember Telnet as a server-based successor to BBS message boards, the latter of which operated by connecting computers directly. It hearkens back to a slower internet age, where you’d log in maybe once or twice a day to read what’s new. Technically, Telnet predates the internet itself, originally developed as anetworked teletype system in the late ‘60s for the internet’s military precursor, the ARPAnet. Years later, it was officially adopted as one of the earliest internet protocols, and today it remains the oldest application protocol still in use—though mainly by enthusiasts like Hurtle.

New Session intentionally embraces this slower pace, making it more like light-interactive fiction than a computer game. For Hurtle, the project isn’t just retro novelty—it’s a radical rejection of the addictive social media and algorithmic attention-mining that have defined the modern day internet.

New Session viewed on a variety of Hurtle's collection of machines. Photos courtesy Cara Esten Hurtle

“I want it to be something where you don’t necessarily feel like you have to spend a ton of time with it,” said Hurtle. “I want people to come back to it because they’re interested in the stories in the same way you’d come back to a book—not to get your streak on Duolingo.”

I won’t go into too much detail, because discovering how the pieces change is kind of the whole point. But on the whole, reading New Session feels akin to a palette cleanser after a long TikTok binge. Its very design evokes the polar opposite of the hyper-consumerist mindset that brought us infinite scrolls and algorithmic surveillance. The fact that you literally can’t consume it all in one session forces readers to engage with the material more slowly and meaningfully, piquing curiosity and exercising intuition.

At the same time, the zine isn’t meant to be a nostalgic throwback to simpler times. New Session specifically solicits works from queer and trans writers and artists, as a way to reclaim a part of internet history that was creditedalmost entirely to white straight men. But Hurtle says revisiting things like Telnet can also be a way to explore paths not taken, and re-assess ideas that were left in the dustbin of history.

“You have to avoid the temptation to nostalgize, because that’s really dangerous and it just turns you into a conservative boomer,” laughs Hurtle. “But we can imagine what aspects of this we can take and claim for our own. We can use it as a window to understand what’s broken about the current state of the internet. You just can’t retreat to it.”

Projects like New Session make a lot of sense in a time when more people are looking backward to earlier iterations of the internet—not to see where it all went wrong, but to excavate old ideas that could have shaped it in a radically different way, and perhaps still can. It’s a reminder of that hidden, universal truth—to paraphrase the famousDavid Graeber quote—that the internet is a thing we make, and could just as easily make differently.

Untold Stories: Setting the Record Straight on Tech's Racial History

An interview with R. Arvid Nelsen highlights his efforts in uncovering the vast amount of history pertaining to black scientists and experts.

^{Michael Martinez (IEEE Computer Society)}

404 Media

2025-06-23 14:11:40

'A Black Hole of Energy Use': Meta's Massive AI Data Center Is Stressing Out a Louisiana Community

A massive data center for Meta’s AI will likely lead to rate hikes for Louisiana customers, but Meta wants to keep the details under wraps.

Holly Ridge is a rural community bisected by US Highway 80, gridded with farmland, with a big creek—it is literally named Big Creek—running through it. It is home to rice and grain mills and an elementary school and a few houses. Soon, it will also be home to Meta’s massive, 4 million square foot AI data center hosting thousands of perpetually humming servers that require billions of watts of energy to power. And that energy-guzzling infrastructure will be partially paid for by Louisiana residents.

The plan is part of what Meta CEO Mark Zuckerberg said would be “a defining year for AI.” On Threads, Zuckerberg boasted that his company was “building a 2GW+ datacenter that is so large it would cover a significant part of Manhattan,” posting a map of Manhattan along with the data center overlaid. Zuckerberg went on to say that over the coming years, AI “will drive our core products and business, unlock historic innovation, and extend American technology leadership. Let's go build! 💪”

Mark Zuckerberg (@zuck) on Threads
This will be a defining year for AI. In 2025, I expect Meta AI will be the leading assistant serving more than 1 billion people, Llama 4 will become the leading state of the art model, and we’ll build an AI engineer that will start contributing increasing amounts of code to our R&D efforts. To power this, Meta is building a 2GW+ datacenter that is so large it would cover a significant part of Manhattan.
Threads

What Zuckerberg did not mention is that "Let's go build" refers not only to the massive data center but also three new Meta-subsidized, gas power plants and a transmission line to fuel it serviced by Entergy Louisiana, the region’s energy monopoly.

Key details about Meta’s investments with the data center remain vague, and Meta’s contracts with Entergy are largely cloaked from public scrutiny. But what is known is the $10 billion data center has been positioned as an enormous economic boon for the area—one that politicians bent over backward to facilitate—and Meta said it will invest $200 million into “local roads and water infrastructure.”

A January report from NOLA.com said that the the state had rewritten zoning laws, promised to change a law so that it no longer had to put state property up for public bidding, and rewrote what was supposed to be a tax incentive for broadband internet meant to bridge the digital divide so that it was only an incentive for data centers, all with the goal of luring in Meta.

But Entergy Louisiana’s residential customers, who live in one of the poorest regions of the state, will see their utility bills increase to pay for Meta’s energy infrastructure, according to Entergy’s application. Entergy estimates that amount will be small and will only cover a transmission line, but advocates for energy affordability say the costs could balloon depending on whether Meta agrees to finish paying for its three gas plants 15 years from now. The short-term rate increases will be debated in a public hearing before state regulators that has not yet been scheduled.

The Alliance for Affordable Energy called it a “black hole of energy use,” and said “to give perspective on how much electricity the Meta project will use: Meta’s energy needs are roughly 2.3x the power needs of Orleans Parish … it’s like building the power impact of a large city overnight in the middle of nowhere.”

404 Media reached out to Entergy for comment but did not receive a response.

By 2030, Entergy’s electricity prices are projected to increase 90 percent from where they were in 2018, although the company attributes much of that to damage to infrastructure from hurricanes. The state already has a high energy cost burden in part because of a storm damage to infrastructure, and balmy heat made worse by climate change that drives air conditioner use. The state's homes largely are not energy efficient, with many porous older buildings that don’t retain heat in the winter or remain cool in the summer.

“You don't just have high utility bills, you also have high repair costs, you have high insurance premiums, and it all contributes to housing insecurity,” said Andreanecia Morris, a member of Housing Louisiana, which is opposed to Entergy’s gas plant application. She believes Meta’s data center will make it worse. And Louisiana residents have reasons to distrust Entergy when it comes to passing off costs of new infrastructure: in 2018, the company’s New Orleans subsidiary was caught paying actors to testify on behalf of a new gas plant. “The fees for the gas plant have all been borne by the people of New Orleans,” Morris said.

In its application to build new gas plants and in public testimony, Entergy says the cost of Meta’s data center to customers will be minimal and has even suggested Meta’s presence will make their bills go down. But Meta’s commitments are temporary, many of Meta’s assurances are not binding, and crucial details about its deal with Entergy are shielded from public view, a structural issue with state energy regulators across the country.

AI data centers are being approved at a breakneck pace across the country, particularly in poorer regions where they are pitched as economic development projects to boost property tax receipts, bring in jobs and where they’re offered sizable tax breaks. Data centers typically don’t hire many people, though, with most jobs in security and janitorial work, along with temporary construction work. And the costs to the utility’s other customers can remain hidden because of a lack of scrutiny and the limited power of state energy regulators. Many data centers—like the one Meta is building in Holly Ridge—are being powered by fossil fuels. This has led to respiratory illness and other health risks and emitting greenhouse gasses that fuel climate change. In Memphis, a massive data center built to launch a chatbot for Elon Musks’ AI company is powered by smog-spewing methane turbines, in a region that leads the state for asthma rates.

“In terms of how big these new loads are, it's pretty astounding and kind of a new ball game,” said Paul Arbaje, an energy analyst with the Union of Concerned Scientists, which is opposing Entergy’s proposal to build three new gas-powered plants in Louisiana to power Meta’s data center.

Entergy Louisiana submitted a request to the state’s regulatory body to approve the construction of the new gas-powered plants that would create 2.3 gigawatts of power and cost $3.2 billion in the 1440 acre Franklin Farms megasite in Holly Ridge, an unincorporated community of Richland Parish. It is the first big data center announced since Louisiana passed large tax breaks for data centers last summer.

In its application to the public utility commission for gas plants, Entergy says that Meta has a planned investment of $5 billion in the region to build the gas plants in Richland Parish, Louisiana, where it claims in its application that the data center will employ 300-500 people with an average salary of $82,000 in what it points out is “a region of the state that has long struggled with a lack of economic development and high levels of poverty.” Meta’s official projection is that it will employ more than 500 people once the data center is operational. Entergy plans for the gas plants to be online by December 2028.

In testimony, Entergy officials refused to answer specific questions about job numbers, saying that the numbers are projections based on public statements from Meta.

A spokesperson for Louisiana’s Economic Development told 404 Media in an email that Meta “is contractually obligated to employ at least 500 full-time employees in order to receive incentive benefits.”

When asked about jobs, Meta pointed to a public facing list of its data centers, many of which the company says employ more than 300 people. A spokesperson said that the projections for the Richland Parish site are based on the scale of the 4 million square foot data center. The spokesperson said the jobs will include “engineering and other technical positions to operational roles and our onsite culinary staff.”

When asked if its job commitments are binding, the spokesperson declined to answer, saying, “We worked closely with Richland Parish and Louisiana Economic Development on mutually beneficial agreements that will support long-term growth in the area.”

Others are not as convinced. “Show me a data center that has that level of employment,” says Logan Burke, executive director of the Alliance for Affordable Energy in Louisiana.

Entergy has argued the new power plants are necessary to satiate the energy need from Meta’s massive hyperscale data center, which will be Meta’s largest data center and potentially the largest data center in the United States. It amounts to a 25 percent increase in Entergy Louisiana’s current load, according to the Alliance for Affordable Energy.

Entergy requested an exemption from a state law meant to ensure that it develops energy at the lowest cost by issuing a public request for proposals, claiming in its application and testimony that this would slow them down and cause them to lose their contracts with Meta.

Meta has agreed to subsidize the first 15 years of payments for construction of the gas plants, but the plant’s construction is being financed over 30 years. At the 15 year mark, its contract with Entergy ends. At that point, Meta may decide it doesn’t need three gas plants worth of energy because computing power has become more efficient or because its AI products are not profitable enough. Louisiana residents would be stuck with the remaining bill.

“It's not that they're paying the cost, they're just paying the mortgage for the time that they're under contract,” explained Devi Glick, an electric utility analyst with Synapse Energy.

When asked about the costs for the gas plants, a Meta spokesperson said, “Meta works with our utility partners to ensure we pay for the full costs of the energy service to our data centers.” The spokesperson said that any rate increases will be reviewed by the Louisiana Public Service Commission. These applications, called rate cases, are typically submitted by energy companies based on a broad projection of new infrastructure projects and energy needs.

Meta has technically not finalized its agreement with Entergy but Glick believes the company has already invested enough in the endeavor that it is unlikely to pull out now. Other companies have been reconsidering their gamble on AI data centers: Microsoft reversed course on centers requiring a combined 2 gigawatts of energy in the U.S. and Europe. Meta swept in to take on some of the leases, according to Bloomberg.

And in the short-term, Entergy is asking residential customers to help pay for a new transmission line for the gas plants at a cost of more than $500 million, according to Entergy’s application to Louisiana’s public utility board. In its application, the energy giant said customers’ bills will only rise by $1.66 a month to offset the costs of the transmission lines. Meta, for its part, said it will pay up to $1 million a year into a fund for low-income customers. When asked about the costs of the new transmission line, a Meta spokesperson said, “Like all other new customers joining the transmission system, one of the required transmission upgrades will provide significant benefits to the broader transmission system. This transmission upgrade is further in distance from the data center, so it was not wholly assigned to Meta.”

When Entergy was questioned in public testimony on whether the new transmission line would need to be built even without Meta’s massive data center, the company declined to answer, saying the question was hypothetical.

Some details of Meta’s contract with Entergy have been made available to groups legally intervening in Entergy’s application, meaning that they can submit testimony or request data from the company. These parties include the Alliance for Affordable Energy, the Sierra Club and the Union of Concerned Scientists.

But Meta—which will become Entergy’s largest customer by far and whose presence will impact the entire energy grid—is not required to answer questions or divulge any information to the energy board or any other parties. The Alliance for Affordable Energy and Union of Concerned Scientists attempted to make Meta a party to Entergy’s application—which would have required it to share information and submit to questioning—but a judge denied that motion on April 4.

The public utility commissions that approve energy infrastructure in most states are the main democratic lever to assure that data centers don’t negatively impact consumers. But they have no oversight over the tech companies running the data centers or the private companies that build the centers, leaving residential customers, consumer advocates and environmentalists in the dark. This is because they approve the power plants that fuel the data centers but do not have jurisdiction over the data centers themselves.

“This is kind of a relic of the past where there might be some energy service agreement between some large customer and the utility company, but it wouldn't require a whole new energy facility,” Arbaje said.

A research paper by Ari Peskoe and Eliza Martin published in March looked at 50 regulatory cases involving data centers, and found that tech companies were pushing some of the costs onto utility customers through secret contracts with the utilities. The paper found that utilities were often parroting rhetoric from AI boosting politicians—including President Biden—to suggest that pushing through permitting for AI data center infrastructure is a matter of national importance.

“The implication is that there’s no time to act differently,” the authors wrote.

In written testimony sent to the public service commission, Entergy CEO Phillip May argued that the company had to bypass a legally required request for proposals and requirement to find the cheapest energy sources for the sake of winning over Meta.

“If a prospective customer is choosing between two locations, and if that customer believes that location A can more quickly bring the facility online than location B, that customer is more likely to choose to build at location A,” he wrote.

Entergy also argues that building new gas plants will in fact lower electricity bills because Meta, as the largest customer for the gas plants, will pay a disproportionate share of energy costs. Naturally, some are skeptical that Entergy would overcharge what will be by far their largest customer to subsidize their residential customers. “They haven't shown any numbers to show how that's possible,” Burke says of this claim. Meta didn’t have a response to this specific claim when asked by 404 Media.

Some details, like how much energy Meta will really need, the details of its hiring in the area and its commitment to renewables are still cloaked in mystery.

“We can't ask discovery. We can't depose. There's no way for us to understand the agreement between them without [Meta] being at the table,” Burke said.

It’s not just Entergy. Big energy companies in other states are also pushing out costly fossil fuel infrastructure to court data centers and pushing costs onto captive residents. In Kentucky, the energy company that serves the Louisville area is proposing 2 new gas plants for hypothetical data centers that have yet to be contracted by any tech company. The company, PPL Electric Utilities, is also planning to offload the cost of new energy supply onto its residential customers just to become more competitive for data centers.

“It's one thing if rates go up so that customers can get increased reliability or better service, but customers shouldn't be on the hook to pay for new power plants to power data centers,” Cara Cooper, a coordinator with Kentuckians for Energy Democracy, which has intervened on an application for new gas plants there.

These rate increases don’t take into account the downstream effects on energy; as the supply of materials and fuel are inevitably usurped by large data center load, the cost of energy goes up to compensate, with everyday customers footing the bill, according to Glick with Synapse.

Glick says Entergy’s gas plants may not even be enough to satisfy the energy needs of Meta’s massive data center. In written testimony, Glick said that Entergy will have to either contract with a third party for more energy or build even more plants down the line to fuel Meta’s massive data center.

To fill the gap, Entergy has not ruled out lengthening the life of some of its coal plants, which it had planned to close in the next few years. The company already pushed back the deactivation date of one of its coal plants from 2028 to 2030.

The increased demand for gas power for data centers has already created a widely-reported bottleneck for gas turbines, the majority of which are built by 3 companies. One of those companies, Siemens Energy, told Politico that turbines are “selling faster than they can increase manufacturing capacity,” which the company attributed to data centers.

Most of the organizations concerned about the situation in Louisiana view Meta’s massive data center as inevitable and are trying to soften its impact by getting Entergy to utilize more renewables and make more concrete economic development promises.

Andreanecia Morris, with Housing Louisiana, believes the lack of transparency from public utility commissions is a bigger problem than just Meta. “Simply making Meta go away, isn't the point,” Morris says. “The point has to be that the Public Service Commission is held accountable.”

Burke says Entergy owns less than 200 megawatts of renewable energy in Louisiana, a fraction of the fossil fuels it is proposing to fuel Meta’s center. Entergy was approved by Louisiana’s public utility commission to build out three gigawatts of solar energy last year , but has yet to build any of it.

“They're saying one thing, but they're really putting all of their energy into the other,” Burke says.

New gas plants are hugely troubling for the climate. But ironically, advocates for affordable energy are equally concerned that the plants will lie around disused - with Louisiana residents stuck with the financing for their construction and upkeep. Generative AI has yet to prove its profitability and the computing heavy strategy of American tech companies may prove unnecessary given less resource intensive alternatives coming out of China.

“There's such a real threat in such a nascent industry that what is being built is not what is going to be needed in the long run,” said Burke. “The challenge remains that residential rate payers in the long run are being asked to finance the risk, and obviously that benefits the utilities, and it really benefits some of the most wealthy companies in the world, But it sure is risky for the folks who are living right next door.”

The Alliance for Affordable Energy expects the commission to make a decision on the plants this fall.

Want to build a gas plant? Get in line. - E&E News by POLITICO

A program in Texas shows how political enthusiasm can’t escape the limits of the supply chain.

^{Jason Plautz (E&E News by POLITICO)}