Google to invest $4B to build data center in Arkansas, powered by Entergy

[View of Google office sign.]
Erman Gunes/iStock Editorial via Getty Images

Google (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) said it will invest $4B in Arkansas through 2027 for the construction of a new data center, powered by Entergy (NYSE:ETR [https://seekingalpha.com/symbol/ETR]), on more than 1,000 acres in West Memphis.

Entergy Arkansas said Google (NASDAQ:GOOG [https://seekingalpha.com/symbol/GOOG]) (NASDAQ:GOOGL [https://seekingalpha.com/symbol/GOOGL]) will cover the full energy costs for the facility. This will contribute over $1.1B in net benefits over the life of the contract and help reduce electricity rates for the utility's customers.

The data center will be powered by Entergy Arkansas' existing generation power portfolio and transmission grid, which will be bolstered by a new 600-megawatt solar project.

This will be backed by a 350 MW battery storage system that will be located in Jefferson County, Arkansas. Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) will pay rates that cover the cost of this resource.

The tech giant also announced [https://blog.google/inside-google/company-announcements/google-american-innovation-arkansas/] a $25M Energy Impact Fund to help scale energy efficiency and affordability initiatives for residents in Crittenden County and the surrounding area.

"The funds will go towards home weatherization, innovative energy efficiency technology and energy workforce development," Entergy (NYSE:ETR [https://seekingalpha.com/symbol/ETR]) said [https://seekingalpha.com/pr/20253723-entergy-arkansas-powers-googles-4b-investment-in-the-state].

Google (GOOG [https://seekingalpha.com/symbol/GOOG]) (GOOGL [https://seekingalpha.com/symbol/GOOGL]) will also offer Arkansas residents no-cost access to its AI courses and career certificates.

"Google's multi-billion-dollar investment in West Memphis is one of the largest investments ever in our state," said Gov. Sarah Huckabee Sanders.

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