Lawmakers discuss the data center industry in Arkansas
Arkansas lawmakers are discussing the state's growing data center industry, focusing on energy and water demands. Google's West Memphis data center project and its partnership with Entergy Arkansas for power, including the Cypress Solar facility, were highlighted. Discussions also touched upon water provision for planned data centers across the state.
Arkansas lawmakers held a Joint Energy Committee meeting to discuss the burgeoning data center industry in the state, with particular focus on the significant energy demands associated with these facilities. Rachel Wilson, an energy market development employee for Google, addressed the committee, detailing Google's engagement with local communities and its exponential energy growth. She highlighted Google's ongoing project in West Memphis and plans for a data center in Little Rock, as well as two other hyperscale data centers in Clarksville and West Memphis, with four more planned for Conway, Grant County, Pulaski County near Wrightsville, and the Port of Little Rock.
A significant portion of the discussion revolved around Google's partnership with Entergy Arkansas to power its West Memphis data center. This includes a special rate contract approved by the Public Service Commission and substantial payments connected to the Cypress Solar facility, a 600-megawatt solar and 350-megawatt battery project in Jefferson County. John Bethel, director of public affairs at Entergy, explained that the utility's contracts ensure data centers pay for their service costs, with Google's over $2.1 billion in expected payments expected to eventually offset costs paid by other ratepayers through the Generating Arkansas Jobs Act.
The committee also heard from Tad Bohannon, CEO of Central Arkansas Water, regarding water provision for data centers. Bohannon stated that his utility has not yet received finalized plans or applications for Google's Little Rock data center or AVAIO Digital's planned facility near Wrightsville. He emphasized that Central Arkansas Water views data centers as economic development projects and is prepared to assess their water needs if communities approve them.