Arkansas’ data race

Google is spearheading Arkansas's rapidly expanding data center sector, having announced and initiated multiple multi-billion dollar projects across the state. The technology giant confirmed a $4 billion investment through 2027 for its West Memphis campus, a sum that West Memphis Mayor Marco McClendon estimates could reach $7 billion to $10 billion. This project, encompassing an 1,100-acre tract, will include data center structures, office buildings, and a power substation, with Entergy Corp. partnering on power supply and integrating solar and battery storage. Google also plans a $25 million investment in energy efficiency initiatives for the Arkansas Delta region and educational collaborations with the University of Arkansas and Arkansas State University. However, Google's West Memphis project was soon eclipsed by AVAIO Digital Partners' announcement in January of a $6 billion facility south of Little Rock, which could expand to over $21 billion. This 760-acre development will host cloud computing and AI applications, with Entergy also providing power. Shortly after, it was revealed that Google is also developing a data center at the Port of Little Rock and another in Conway, with the Port of Little Rock campus involving significant wetland filling, requiring mitigation credits and drawing over 100 megawatts of power. Further expanding the state's data center footprint, Serverfarm, a Los Angeles-based developer, acquired land in Clarksville last October for a potential $8 billion, 135-acre campus, which has since been rezoned for industrial use. The article also briefly noted a failed deal for a $1 billion data center at the Southwest Arkansas Mega Site near Arkadelphia. These developments follow legislative changes in Arkansas (Act 548) to broaden the definition of data center projects eligible for tax breaks, highlighting the state's proactive approach to attracting this industry. Rex Nelson, a senior editor at the Arkansas Democrat-Gazette, reports on these economic shifts.