Cleco will provide power to a new data center being developed by Applied Digital in Rapides Parish, the company confirmed Wednesday.

Gov. Jeff Landry officially announced the project Tuesday during an Alexandria press conference held in partnership with Louisiana Economic Development and Louisiana Central.

“The data center project will be transformative for Rapides Parish and our customers,” said Bill Fontenot, president and CEO of Cleco. “As a company, we welcome Applied Digital and look forward to meeting their needs for safe and reliable energy for years to come.”

According to Applied Digital and economic development experts, the project is expected to create more than 1,000 jobs during construction and another 200 long-term positions, while stimulating additional opportunities for existing local businesses.

“The number of jobs generated by this project is significant for central Louisiana, and it aligns with our priorities to foster business growth locally and throughout the state,” Fontenot said. “A project of this size will have positive generational impacts on the region.”

Company officials stated that large-load customers like data centers can help lower costs for existing customers by spreading system expenses across a broader base. The project is also expected to bring upgrades to power lines, substations and equipment to strengthen the regional power grid.

Fontenot emphasized that infrastructure costs will not fall on current residents.

“Costs for infrastructure investments and power generation will be reimbursed by the data center with assurances made that prevent the shifting of costs onto other customers,” Fontenot said. “Improving infrastructure will lead to stronger resiliency and reliability for all customers.”

The project remains subject to oversight by the Louisiana Public Service Commission.

Cleco representatives noted the utility has met Louisiana’s reliability standards for the past 27 years, maintaining power delivery more than 99.99% of the time.