Entergy Arkansas Expands Google West Memphis Partnership, Delivering at Least $500M in New Customer Savings

Entergy Arkansas has announced a second phase of its partnership with Google to support the company's expanding data center presence in West Memphis, a deal that will see Google fund roughly $600 million in new grid infrastructure while generating at least $500 million in savings for all of the utility's customers over a 20-year period beginning in 2028. The arrangement builds on the $1.6 billion in benefits already identified under Entergy's Fair Share Plus pledge from the first phase of Google's West Memphis investment, bringing the total net customer benefit to more than $2.1 billion.

The agreement reflects a growing model in which large technology companies bear the full cost of the power resources they require, shielding ordinary ratepayers from the expense of serving energy-intensive data center loads. Under the original and updated contracts, Google will pay 100% of the cost for its power needs as well as a share of the fixed system costs that all customers share, meaning that Entergy Arkansas's 738,000 customers across 63 counties will see lower bills than they would have otherwise. "Google is increasing its investment in West Memphis and building on the significant success of its first phase," said Laura Landreaux, president and CEO of Entergy Arkansas. "We are delivering on our promise to all Entergy Arkansas customers to create value for everyone we serve by ensuring Google is not only paying 100% of its power needs but is also contributing to the existing grid and lowering the costs for everyone else."

The infrastructure package includes a 1,000 megawatt-hour battery energy storage system at the Driver Solar site near Osceola and a 400 megawatt-hour battery system near Hot Springs, both expected online in 2028, along with a 440 megawatt (ac) solar power purchase agreement from the Big Island solar facility under construction in Mississippi County. Entergy Arkansas will also expand the Galet substation near West Memphis and build two new 230 kV transmission lines to serve the expanded data center campus. Combined with the Arkansas Cypress Solar and Battery facility already under construction in Jefferson County, these additions will bring more than 1,000 megawatts of solar power and 2,800 megawatt-hours of dispatchable battery storage to the state's grid. The resources are separate from the Steel River Solar project in Northeast Arkansas, developed in partnership with Cypress Creek Energy, which Kevin Smith, the company's CEO, described as part of building "the nation's largest solar energy project" using 100% U.S.-made panels and structural steel, much of it sourced in Arkansas.

Google framed the investment as part of its broader commitment to operate on 100% carbon-free energy by 2030. "By funding new solar, battery storage and transmission capacity, we're helping deliver savings to Entergy Arkansas customers, while directly supporting energy affordability, grid reliability and local economic growth across the West Memphis community," said Amanda Peterson Corio, Google's global head of energy and power. West Memphis Mayor Marco McClendon said the expansion "sends a powerful message" that the city "is a great place to do business and a community worth investing in," noting that Google has already created jobs and funded schools and workforce initiatives locally, including a $25 million Energy Impact Fund and $5 million in energy affordability measures tied to the Steel River project announced in July.

The expansion will be submitted to the Arkansas Public Service Commission for approval, with the contract's provisions fully visible to regulators and the Arkansas Attorney General, and the new resources will not be charged through the Generating Arkansas Jobs Act Rider. Pending approval, the project is expected to enter service in 2028. For Entergy Arkansas, the deal illustrates how utilities can attract large industrial customers while spreading fixed system costs across a broader base, and Landreaux said the partnership "demonstrates what is possible when thoughtful planning, responsible investments, strong regulatory oversight and customer protections intersect."