Entergy Arkansas announced Tuesday that a second phase of its agreement to serve Google’s expansion in West Memphis will deliver at least $500 million in net customer savings beginning in 2028 and running over 20 years.
The utility said the new work includes investments to strengthen the power grid that will be paid by Google, not by Entergy Arkansas ratepayers. The company said the arrangement builds on a first phase of service tied to Google’s West Memphis investments and a prior $1.6 billion in benefits the utility had identified under its Fair Share Plus pledge.
Entergy Arkansas, which serves about 738,000 customers, said Google will cover the full cost for the power resources it needs. The utility called the combined effect of both phases a total of $2.1 billion in net benefits that help offset fixed costs shared by all customers.
“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,” said Laura Landreaux, president and CEO of Entergy Arkansas.
what Entergy and Google have pledged
- Entergy said Google will fund the power resources and grid upgrades needed for the company’s data center capacity in West Memphis.
- The utility projects at least $500 million in additional customer savings starting in 2028 and extending 20 years, beyond the previously announced $1.6 billion from phase one.
- Google has also committed local funds: Entergy noted Google’s $25 million West Memphis Energy Impact Fund and a separate July announcement of $5 million for energy affordability tied to the Steel River project.
Entergy framed the arrangement as an example of its Fair Share Plus pledge, a policy under which very large customers pay their full cost of service and provide measurable value to all customers. Company officials said the structure prevents other customers from subsidizing the power use of a single large user.
In its announcement, Entergy emphasized economic development benefits for West Memphis and Crittenden County tied to Google’s investment, including community programs financed through Google’s local funds. The utility said the new infrastructure work will strengthen reliability for all Entergy Arkansas customers without additional cost to them.
The company did not disclose the precise scope or locations of the new grid upgrades in the announcement. Entergy’s statement described the package as part of a continued partnership with Google to support the technology company’s presence in West Memphis.
Local and state officials have promoted large data center investments in Arkansas as a driver of economic growth and tax revenue, while utilities and regulators have focused on how to provide reliable service and allocate costs. Entergy Arkansas is a regulated electric utility; major generation and transmission investments affecting rates are subject to oversight by the Arkansas Public Service Commission when filings are required.
Entergy’s announcement Tuesday follows prior statements that tied the West Memphis projects to grid enhancements and community funding. Google’s Energy Impact Fund and its stated commitments to local energy affordability and workforce initiatives were cited by the utility as part of the broader public benefit from the company’s investments.
