‘We don’t want to see it, hear it or smell it’: Grant County sets hard boundaries for incoming data center
Grant County, Arkansas, has set strict conditions and financial demands for a proposed 800-megawatt data center and solar farm project by Clean Cloud Energy, for which an unnamed "end user" has been found. County Judge Randy Pruitt outlined six non-negotiable demands regarding environmental impact, noise, electricity rates, and internet quality, which the company must meet to be considered for property tax abatements. The county also requires a one-time lump sum payment of nearly $57 million and annual fees from the end user to receive a 65% tax abatement.
Grant County, Arkansas, has established a stringent set of rules for a proposed $8 billion to $12 billion data center project, for which an unnamed "end user" has been identified. Austin, Texas-based Clean Cloud Energy initially presented plans for a 500-megawatt data center and 400-megawatt solar farm, later expanding the data center to 800 megawatts after the Arkansas Electric Cooperative Corp. secured additional capacity.
Grant County Judge Randy Pruitt, guided by an advisory group, outlined six core demands for the data center, including minimizing visual, auditory, and olfactory impacts, protecting the water table, preventing electricity rate hikes, and ensuring internet stability. Meeting these demands makes a company eligible for a 20% property tax abatement. For a more significant 65% abatement, the end user must commit to a one-time payment of nearly $57 million to the county, distributed among various community services, and annual payments of $12.4 million, partially funding property tax refunds for residents. Violations of the six demands could result in $1 million fines and nullification of the tax abatement.
Pruitt stated that he alone will decide on the tax abatement, absolving the Quorum Court from the burden of the decision, especially after he and the Quorum Court members faced a dismissed lawsuit alleging Freedom of Information law violations. The county is demanding a closed-loop, air-chilled cooling system for the data center due to limited water resources. Officials, including Justice of the Peace Mike Nevens, emphasized a "take-it-or-leave-it" approach, prioritizing community well-being over securing any development at all costs. Clark Bixler, development director for Clean Cloud Energy, commended Grant County's proactive and thoughtful approach.