Little Rock Adopts Data Center Regulations Amid Ongoing Opposition
The Little Rock City Board unanimously passed new land-use regulations for data centers, including a hyperscale project by Google in Pulaski County. However, local activists expressed deep dissatisfaction, advocating for a moratorium on new data center development and stronger environmental and community protections, which the city board did not enact. The Pulaski County Quorum Court is still considering its own regulations and a moratorium.
The Little Rock City Board unanimously approved new land-use regulations for data centers proposed by Mayor Frank Scott Jr. The ordinance applies to all data centers within Little Rock, including a hyperscale project by Google near the Sweet Home neighborhood in east Little Rock, which is currently seeking a permit from the Army Corps of Engineers to dredge wetlands. Another project by AVAIO Digital near Wrightsville is subject to Pulaski County regulations, where a moratorium has been considered but not yet passed.
Despite the city's new regulations, dozens of residents and activists, including environmental attorney Richard Mays and local Sierra Club president George Wise, expressed strong opposition at the meeting. They argued the regulations lack "teeth," do not provide sufficient environmental and community protections, and urged the city to enact a moratorium on new data center construction and permitting to allow for more robust policy development. Opponents voiced concerns over potential water quality issues, air and noise pollution from backup generators, ecosystem loss, and the lack of clear monitoring and remediation.
Representatives from Google, Entergy Arkansas, and Central Arkansas Water spoke in favor of the projects, emphasizing that Google would cover 100% of its utility infrastructure costs. However, critics challenged these claims, pointing out that Entergy Arkansas is raising rates for all residential customers through the "Generating Arkansas Jobs Act" rider to fund new power plants, which are partly justified by the demand from large industrial customers such as data centers. The city also has an agreement with Google for a 65% property tax abatement over 30 years in exchange for annual payments, which critics find insufficient.
Legal experts, including attorney Wendell Griffen, argued that the Arkansas Data Center Act of 2023 might not apply to hyperscale data centers, contrary to the city attorney's opinion, and advocated for stronger local action, including potential moratoriums. Google stated that construction is 12 to 18 months away as it navigates the permitting process.