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Meta is financing the data center using accounting tricks that the Wall Street Journal reports appear "too good to be true."
The tiny town of Holly Ridge, Louisiana will soon be home to a massive $27 billion artificial intelligence data center being built by Facebook parent company Meta that, when finished, will be the largest in the world.
However, residents of Holly Ridge do not feel honored that they are at the epicenter of Meta's ambitious data center buildout, which they say has upended their entire community.
As reported by New Orleans-based public radio station WWNO last week, the nonstop parade of trucks driving through Holly Ridge has led to a 600% increase in vehicle crashes over the last year, including three truck crashes that occurred just outside Holly Ridge Elementary School.
Penelope Hull, a fourth-grade student at the school, told WWNO that the data center construction trucks are highly disruptive to learning even on days when they don't get into accidents, as they often cause the classroom walls to shake.
"You can't pay attention," she said. "And then you get off track and you lose what the teacher was telling you to do."
Hull also said that the school has had to shut down its playground out of concern that Meta construction trucks will crash into children playing during recess.
The threat of trucks crashing into schools isn't the only problem that the data center has brought. Local residents Joseph and Robin Williams told WWNO that they've noticed their tap water is frequently rust colored since Meta started building the data center, and they say their electricity frequently goes off for hours on end with no warning.
Similar issues were documented by progressive media outlet More Perfect Union, which sent its reporters down to Holly Ridge and found residents felt their concerns were being completely ignored by both Meta and their local elected officials.
"We had no voting on it, no community meetings, no nothing," one local woman told More Perfect Union. "It was done all under the table."
Another local resident told More Perfect Union that Holly Ridge has become "totally different" ever since Meta began AI data center construction.
"Who wants to live like this?" he asked as he looked on at more construction trucks barreling through the community.
Zuckerberg is building a data center in Louisiana the size of Manhattan — while Meta runs ads about how small towns love their data centers, we found furious locals who plan to leave town completely. pic.twitter.com/xHLG4KJMLO
— More Perfect Union (@MorePerfectUS) November 19, 2025
According to a Monday report in the Wall Street Journal, the massive Meta Louisiana data center is being funded through debt that is being papered over with accounting gimmicks that the paper notes are likely "too good to be true."
Specifically, the Journal said that Meta has created a joint venture known as a variable interest entity with investment manager Blue Owl Capital, in which Meta will rent the data center for up to 20 years as a way to keep the debt from its construction off its books.
"This lease structure minimizes the lease liabilities and related assets Meta will recognize, and enables Meta to use 'operating lease,' rather than 'finance lease,' treatment," the Journal explained. "If Meta used the latter, it would look more like Meta owns the asset and is financing it with debt."
However, the report noted that Meta is relying on "some convenient assumptions" in justifying its use of this accounting tactic, some of which "appear implausible" and "are in tension with one another," which makes it hard to justify keeping debt from the data center off its books.
"Ultimately, the fact pattern Meta relies on to meet its conflicting objectives strains credibility," reports the Journal. "To believe Meta’s books, one must accept that Meta lacks the power to call the shots that matter most, that there’s reasonable doubt it will stay beyond four years, and that it probably won’t have to honor its guarantee—all at the same time."
Commenting on the Journal's story about the data center financing, Wired editor Tim Marchman described it in a post on Bluesky as "the equivalent of a 500-foot neon sign reading 'FRAUD.'"
One group noted who would actually complain: "Someone who depends on Social Security to buy groceries. Someone who depends on Social Security to pay rent. Someone who depends on Social Security to survive."
As U.S. President Donald Trump's temporary leader of the Social Security Administration threatened to shut down the agency over an unfavorable court ruling on Friday, the billionaire commerce secretary came under fire for suggesting that only "fraudsters" will complain if they don't get their earned benefits.
U.S. Commerce Secretary Howard Lutnick appeared on All-In—a podcast hosted by "four billionaire besties"—on Thursday. A brief clip of his interview, which lasted an hour and 45 minutes, made the rounds on social media Friday.
Lutnick told two of the hosts that if the SSA didn't send out checks this month, his 94-year-old mother-in-law "wouldn't call and complain," but "a fraudster always makes the loudest noise, screaming, yelling, and complaining."
Critics were quick to point out Lutnick's wealth. As More Perfect Union posted, "His net worth is estimated at $2 billion."
Richard Phillips, pensions and tax policy director for U.S. Senate Committee on Health, Education, Labor, and Pensions Ranking Member Bernie Sanders (I-Vt.),
called the commerce secretary's comments "shameful."
"Nearly 40% of seniors rely on Social Security for a majority of their income and nearly 1 in 7 rely on it for more than 90% of their income," according to Phillips. "These people would call due to missing checks because their very survival depends on it."
The watchdog group Public Citizen similarly pushed back on social media, saying: "You know who actually makes the loudest noise? Someone who depends on Social Security to buy groceries. Someone who depends on Social Security to pay rent. Someone who depends on Social Security to survive. But billionaires like Howard Lutnick don't care about those people."
Groundwork Collaborative chief of policy and advocacy Alex Jacquez said in a statement that "the Trump administration just told seniors that they should shut up and sit down if they don't receive their Social Security checks on time. The real 'fraudsters' are Trump's out-of-touch billionaire donors and advisers denying seniors their hard-earned benefits to pay for their next tax giveaway."
Everett Kelley, president of the American Federation of Government Employees, a union for federal workers, also tied Lutnick's remarks to Republican tax ambitions—as well as a broader attack on the federal bureaucracy by Trump and the de facto leader of his Department of Government Efficiency (DOGE), billionaire Elon Musk.
"First, Elon called Social Security a 'Ponzi scheme' and said we need to eliminate it," Kelley said. "Then DOGE started trying to cut SSA staff. Now Lutnick says 'don't complain' when the payments stop. They are taking money from working-class people in order to give it to their rich friends."
As Common Dreams reported earlier Friday, acting Social Security Administration Commissioner Leland Dudek is threatening to shut down the agency in response to a federal judge's Thursday order blocking DOGE's SSA "data grab." The Washington Post later revealed that the official "is consulting with agency lawyers and the Justice Department" about the possible shutdown.
Some political observers see the Republican administration's attacks on the SSA—and the rest of the federal government—as a major opportunity for the Democratic Party, which has minorities in both chambers of Congress.
"If Dems have any strategic mojo left, they will clip this and play it on a nonstop television ad loop in the two Florida districts holding special congressional elections," Helaine Olen of the American Economic Liberties Project said about the Lutnick interview. "Seniors will rightly whine when their checks don't show up."
Already, some seniors have publicly shared stories of benefits incorrectly shut off since Trump took office, and some congressional Democrats are taking aim at his administration. Rep. John Larson (D-Conn.), a longtime SSA defender who has framed the DOGE assault as a push toward privatization, posted the commerce secretary's video on social media.
"Trump and Musk's cuts to the Social Security Administration could lead to the delay, denial, and disruption of your EARNED BENEFITS," Larson said Friday. "For 40% of our seniors, Social Security is the only income they have. They can't just wait for their next check."
Also responding to the clip, Sen. Chris Murphy (D-Conn.) said, "They are getting ready to destroy Social Security. Because the billionaires don't need it. Prepping the ground here by shaming people who dare complain if their Social Security check disappears."
The Social Security comments aren't the only reason the commerce secretary is facing intense criticism this week. On Wednesday, he told viewers of Fox News' "Jesse Watters Primetime" to buy stock in Musk's electric vehicle maker, Tesla. One watchdog leader noted that Lutnick "conveniently forgot to mention his family business empire holds nearly $840 million in the company."
The nonpartisan Campaign Legal Center on Friday filed a complaint with the Office of Government Ethics and an ethics official at the U.S. Department of Commerce, urging them to investigate Lutnick's comments about Tesla stock—which has been crashing due to protests of the company resulting from Musk's work for the Trump administration.
"While Trump cuts programs you need to live, he's turning the White House into a car dealership to advertise his unelected shadow president's failing company," said one critic.
With Tesla's stock plummeting since the electric carmaker's CEO, Elon Musk, arrived in Washington, D.C. and began slashing federal jobs and programs, U.S. President Donald Trump on Tuesday was intent on helping his "special government employee" as he spent part of the afternoon inspecting five of the company's cars on the White House lawn.
The president declared the cars "beautiful" and expressed hope that his purchase of a Tesla will help the company's financial position.
More Perfect Union, the labor-focused media organization, cast doubt on Musk's claim that he will double production due to the president's interest, "given declining demand for his cars."
"This is just two corrupt oligarchs scratching each other's backs," said the group.
He also joined Musk in condemning protests that have broken out at Tesla dealerships over the CEO's work at the Trump-created Department of Government Efficiency (DOGE), which has pushed to dismantle agencies across the federal government and overseen the firing of about 30,000 federal employees.
"It's really terrible that there's so much violence being perpetrated against people at Tesla, Tesla supporters, Tesla owners, Tesla stores" said Musk after thanking Trump for displaying the cars. "These are innocent people who have done nothing wrong."
There have been at least 10 acts of vandalism reported against Tesla vehicles, charging stations, and dealerships in recent weeks as outrage has grown over the unelected Musk's enormous influence at the White House. No injuries have been reported in any of the incidents.
Shares of the company plummeted 15% on Monday—Tesla's worst day in four and a half years. Since peaking in mid-December after Musk poured nearly $300 million into Trump's election campaign, Tesla's shares have lost more than 50% of their value and the company has lost more than $800 billion.
Before parading Tesla's products in front of the press at the White House, the president took to his social media platform, Truth Social, to lambast "Radical Left Lunatics" for "trying to illegally and collusively boycott" his ally and benefactor's company.
"Why should he be punished for putting his tremendous skills to work in order to help make America great again?" asked Trump.
Podcast host Matt Bernstein called the scene at the White House "jaw-dropping."
"While Trump cuts programs you need to live, he's turning the White House into a car dealership to advertise his unelected shadow president's failing company," said Bernstein. "Dystopian levels of corruption."
At the White House, the president also suggested he may label any attacks against Musk's dealerships as domestic terrorism.
"Those people are going to go through a big problem when we catch them," said Trump. "And let me tell you, you do it to Tesla, and you do it to any company, we're going to catch you and you're going to go through hell."
Murtaza Hussain of Drop Site News projected that with the Trump administration pushing to deport visa holders who have participated in pro-Palestinian protests—with at least one abducted by immigration agents and detained in recent days—"we're maybe two years away from people deported for terrorism for keying a Tesla."