Arkansas is a data center growth spot
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The number of planned data centers in Arkansas is set to more than double from six in operation to 13, per a new analysis shared first with Axios.
Why it matters: Big tech and many local leaders are full steam ahead on building as many data centers as possible to generate revenue and power the AI boom — but they're fueling a major political fight, with locals pushing back over energy use and other concerns.
The big picture: Nearly 3,000 new data centers are under construction or planned across the U.S. — adding to the more than 4,000 already in operation.
- That's according to a new report from the American Edge Project (a pro-tech advocacy group) and the Technology Councils of North America (which represents tech and IT trade organizations).
Zoom in: In Arkansas, Google broke ground on a $4 billion West Memphis data center in October.
- Some critics wonder if the amount of electricity and water used by the new sites will justify the number of jobs created.
- The American Edge report estimates that while nearly 12,000 jobs will be created to build the centers, only 1,750 roles will be permanent.
Some also worry that utility rates for consumers will increase due in part to Act 373, which restructures how electric and natural gas utilities build, finance and recover costs for large projects.
- Entergy Arkansas has stated that its agreement with Google was "designed to put downward pressure on electricity rates for Entergy Arkansas customers."
Zoom out: Virginia leads the country in data centers, with 663 operational and 595 more either under construction or planned.
- Texas is also up there, with 405 existing data centers and 442 planned or being built.
Follow the money: "$560 billion in AI-related venture investment has flowed into all 50 states across nearly 27,000 deals from 2019 to the first eight months of 2025," the groups say.
- Data centers will generate nearly $27 billion in estimated tax revenue nationwide over the next decade, per the report.
What they're saying: "Whether you live in a coastal tech hub, a manufacturing corridor, or a rural community, AI is now a major engine of local jobs, construction, revenue, and long-term economic growth," AEP CEO Doug Kelly says in the report.
- "This trillion-dollar build-out is creating new opportunities for electricians, construction workers, engineers, and logistics teams while strengthening tax bases that support schools, roads, police, and other essential services."
The other side: Data center detractors say they cause environmental and energy-use problems, quality-of-life issues for surrounding neighborhoods, and relatively little permanent job creation given the huge investments and big tax breaks often involved.
- U.S. Sen. Bernie Sanders (I-Vt.) — tapping into fears that AI could erase jobs and consolidate wealth — is pushing for a moratorium on the construction of data centers powering the AI boom.
- "Data centers are the largest development issue of our generation," Angie McCarthy, Maryland's state conservation advocate at environmental group Nature Forward, recently told Axios' Mimi Montgomery.
- There's also the question of what will happen to all these new data centers if the AI boom turns out to be a bust.
What we're watching: Whether these forecasts hold true as the AI industry's bubble-or-no-bubble tension plays out.