Google to Fund $600 Million Arkansas Power Buildout for AI Data Centers, Absorbing Grid Costs

Alphabet Inc. (GOOGL) will bear the full cost of new power infrastructure for its western Memphis, Arkansas data center campus under an expanded agreement with utility Entergy (ETR), announced on the 19th. The roughly $600 million investment is structured so data center expansion costs are not passed to ordinary ratepayers. Google will also share fixed costs of the existing grid over a 20-year contract term. Entergy estimates the arrangement will save other customers at least $500 million over 20 years starting in 2028, though the figure is a company projection. The buildout includes a 1,000MWh battery storage system near Driver Solar, 400MWh of storage near Hot Springs, expansion of the Galet substation, two new 230kV transmission lines and a 440MW solar purchase agreement supplied by the Big Island plant. Combined with earlier plans, added resources exceed 1GW of solar and 2,800MWh of storage, with new facilities expected in service in 2028. The plans require approval from the Arkansas Public Service Commission. Google announced in October 2025 a $4 billion cloud and AI data center investment in Arkansas through 2027.