Google will pay $716M for data center power
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Google will pay Entergy Arkansas $526 million to help build Cypress Solar near Pine Bluff, plus another $190 million for transmission upgrades, the Arkansas Democrat-Gazette reported first.
Why it matters: The disclosure puts numbers on a deal that has stayed mostly confidential and lands as Entergy faces a separate rate case before the Arkansas Public Service Commission (PSC) that will impact 730,000 customers, drawing objections from Walmart and other business groups.
Driving the news: Details came from documents obtained through an Arkansas Freedom of Information Act request made to the PSC by resident Jessica Kivell and shared with the newspaper.
Flashback: The Arkansas Democrat-Gazette has been trying for months to obtain the contract details through public records requests and a lawsuit that was dismissed by the judge.
- Google last fall announced the $4 billion data center would be built on 1,100 acres near West Memphis.
The big picture: Google's deal with Entergy shows how a national data center boom is colliding with Arkansas utility costs, secrecy and pressure over who should pay for the power buildout.
State of play: The solar and battery project in Jefferson County will feed the grid serving Google's West Memphis data center. Google's portion will pay for about a third of its estimated construction costs.
- The PSC memo cited by the paper says Google's payments include $443 million in accelerated payments and $83 million in minimum demand payments.
- It also says service starts in February 2027 and ramps up to 600 megawatts by October 2029.
- Entergy said Google will pay rates that cover the cost of the resource.
The other side: Entergy declined to comment on the documents and Google did not immediately respond, the Arkansas Democrat-Gazette reported.
What's next: Entergy's next big test comes Nov. 4–5, when the PSC takes up the rate case and can question the utility on the Google-related power buildout, customer costs and its push for higher base rates.