In the race to build data centers across Arkansas, the Google campus at West Memphis has taken the lead. Google is already hiring electrical engineers and facilities technicians.
I spent several days in West Memphis last summer to report on the amazing economic developments in Crittenden County. Those developments include the explosive growth of Southland Casino, a future Buc-ee’s location adjacent to Interstate 40, and a future water park and hotel complex known as Epic Resort. But even though an official announcement had not been made, city and county officials couldn’t help talking off the record about Google.
That announcement came in October when Google officials confirmed that they will spend $4 billion through the end of 2027. At the time, it was the largest private investment announcement in Arkansas history. The biggest previous capital investment was $3 billion spent on the recently completed Big River Steel II plant in south Mississippi County.
West Memphis Mayor Marco McClendon believes the total investment by Google could wind up being $7 billion to $10 billion. McClendon said the first phase of the campus will employ about 300 people, with thousands working at the site at the peak of construction.
McClendon said property taxes on the site will produce millions of dollars per year for the West Memphis School District.
The project is being built on an 1,100-acre tract and is expected to take between 18 and 24 months to complete. The campus will include data center structures, office buildings, a power substation, and other infrastructure. In partnership with Entergy Corp., Google will cover the costs associated with powering the facilty. Laura Landreaux, president and CEO of Entergy Arkansas, said the project will “stimulate economic growth in northeast Arkansas and across the state.”
“This project is more than just jobs, buildings and technology,” McClendon said. “It’s about the future of our city, opportunity, investment and education.”
Laurel Brown, regional head of data center public affairs at Google, said: “We’re also working together to bring solar energy and battery storage resources online. We’ll integrate innovative load flexibility into our power contract to reduce our usage during times when the grid is constrained.”
Google plans to invest $25 million to implement energy efficiency initiatives in this part of the Arkansas Delta. McClendon promises that there will be more announcements regarding what he calls a “community development agreement” between Google and the city. The energy efficiency program will focus on home weatherization, efficiency technology, and energy workforce development.
Google also announced that the University of Arkansas and Arkansas State University will be among the first cohort of what’s known as Google AI for Education Accelerators. Students, faculty and staff will be given access at no cost to Google career certificates and AI training classes.
The West Memphis project, however, didn’t stay atop the list of largest announced capital investments for long.
We learned in January that AVAIO Digital Partners of Connecticut will build a $6 billion facility just south of Little Rock. The 760-acre tract is north of 145th Street and west of Wrightsville. AVAIO officials said the cost could grow to more than $21 billion (think of the tax revenue a project that size could bring) if all elements are added. AVAIO officials said the user of the site will hire more than 500 employees during the next five years.
Sydney Sasser wrote in the Arkansas Democrat-Gazette: “The center will be designed to host the computing, networking and data storage technologies (and the power infrastructure) that underpin cloud computing and artificial intelligence applications. … AVAIO plans to lease space in the data center to other data companies.”
“It’s our intention that this extraordinary site in the Little Rock area will be both a major pole of data center capacity and an engine of sustained economic and technological momentum for Arkansas,” said Mark McComiskey, the AVAIO CEO.
As is the case in West Memphis, Entergy will supply power for the AVAIO campus.
Just two days after the AVAIO announcement, the Democrat-Gazette reported that Google is the company developing a data center at the nearby Port of Little Rock. Google had yet to announce its involvement in the project. Google is also expected to construct a data center at Conway.
A document that was later submitted by Google to the U.S. Army Corps of Engineers said the campus at the Port of Little Rock will consist of five industrial buildings totaling 1.43 million square feet, two office buildings and an electrical substation.
“Google’s center will also contain transmission lines, a sewer lift station and a parking lot,” Lucas Dufalla wrote in the Democrat-Gazette. “Construction will involve filling about 16.8 acres of wetlands. Google plans to purchase wetland mitigation credits as an offset, according to the application.”
A revised public notice posted by the Corps said the data center at the port will “likely draw more than 100 megawatts of power.”
So we know Google will have at least three data center campuses in Arkansas–at West Memphis, Little Rock, and Conway. What we don’t know is how many billions of dollars Google eventually will invest in the state.
“Google is investing in the next generation of AI innovation in Arkansas and across the country,” said Ruth Porat, the company’s president and chief investment officer. “We see AI and the energy powering it to be the innovations that will define this century. The upside of AI cannot be unlocked without the energy it requires. That’s why Google is building energy capacity that protects affordability for ratepayers and creates jobs that will drive the AI-powered economy.”
Entergy’s Landreaux described the partnership between Google and Entergy as “a turning point for our state.”
In Clarksville, meanwhile, Serverfarm, a data center developer based in Los Angeles, has plans for a 135-acre campus. The project, located north of Interstate 40, could cost $8 billion with six buildings covering 2.16 million square feet. The land was acquired last October. It was then rezoned from rural to industrial use. The project is expected to be built in three phases. It’s not clear how much the first phase will cost.
Serverfarm is building data center projects around the world. It’s owned by Manulife, the largest insurance company in Canada and one of the 30 largest fund managers in the world.
In southwest Arkansas, the Economic Development Corp. of Clark County voted last month to sell the 991-acre Southwest Arkansas Mega Site south of Arkadelphia to an unnamed buyer for a data center campus. Members of the board were told that the buyer would make a minimum investment of $1 billion.
Shelley Short, CEO of the Arkadelphia Regional Economic Development Alliance, said: “I’m incredibly excited, but we’ll have to be patient.”
The deal, however, quickly fell through. The Southwest Arkansas Mega Site is back on the market.
During last year’s legislative session, lawmakers changed the definition of data center projects that qualify for tax breaks. Act 548 added to the definition of a “qualified investment” to include a “qualified large data center” that can be but isn’t limited to “nonadjacent physical locations that are connected to each other by fiber and associated equipment.”
Rex Nelson is a senior editor at the Arkansas Democrat-Gazette.
