Google to pay Entergy Arkansas $526 million for solar facility to feed West Memphis data center
Google will pay Entergy Arkansas $526 million for the Cypress Solar facility and an additional $190 million for transmission upgrades to power its West Memphis data center. Details of the special rate contract, previously confidential, were revealed through an Arkansas Freedom of Information Act request. The Arkansas Public Service Commission approved the contract despite concerns about whether Google's payments adequately cover costs for residential customers.
Google has committed to paying Entergy Arkansas $526 million for the construction of the Cypress Solar facility, a 600-megawatt solar field with a 350-megawatt battery storage system, to help power its new $4 billion data center near West Memphis. Additionally, Google will pay $190 million for necessary transmission system upgrades. These financial details were made public after Central Arkansas resident Jessica Kivell obtained confidential documents through an Arkansas Freedom of Information Act request submitted to the state Public Service Commission.
The Public Service Commission had approved a special rate contract between Google and Entergy in December, with details largely shielded from public view due to claims of confidential business information. The Arkansas Democrat-Gazette subsequently sued the commission to gain access to the contract. The Cypress Solar facility, whose plans were approved by the commission in March, will be located in Jefferson County and is expected to be completed by late 2028.
While Google's data center, scheduled to begin drawing power in February 2027 and reach its full 600-megawatt capacity by October 2029, will draw from Entergy's general grid, Google will purchase renewable energy credits from the Cypress Solar facility. These credits are crucial for Google to meet its corporate clean-energy targets. However, internal commission documents raised questions about the classification of Google's payments, particularly whether they should be treated as a "contribution in aid of construction" which would reduce costs for other customers. Entergy residential customers already face a $5.77 monthly increase, partly to cover new power generation projects including Cypress Solar.
The special rate contract has an initial term of 20 years and includes a potential $2 billion termination fee for Google if it breaches the agreement within the first 13 years. Entergy attorney Gary D. Marts Jr. requested the Democrat-Gazette and others to refrain from further disclosure of what he termed "trade secrets," while Entergy spokesman Matt Ramsey declined to comment due to alleged confidential customer information. Google has not yet responded to requests for comment regarding the newly released documents.