Arkansas Data Industry Gets a Historic Lift with Google’s Record $4 Billion Project

As the data center boom sweeps across the United States, Arkansas has long been preparing its land, fertile for the investments of the data giants. That effort is now coming to fruition, as Google, the mighty Google, has chosen Arkansas for its investment. It’s a jackpot: a $4 billion project from Google, marking the largest capital investment in Arkansas history. The project will also connect the state to Google’s global network of data centers and offers a significant opportunity for Arkansas to position itself alongside more established technology hubs.

The Big Project

Google’s ambitious plan for Arkansas focuses on five large-scale data center buildings, along with offices and parking areas, covering 920 acres of a 1,178-acre plot on Bollinger Road, just south of Interstate 40. The land was acquired by Google subsidiary Groot LLC.

The new campus, expected to be completed in 2027, will employ approximately 300 people and deliver substantial computing power to support the company’s cloud, networking, and data storage operations. While Google has not officially disclosed a price, early reports suggested the figure could approach $10 billion; however, regulatory filings indicate that estimate may be overstated, with the project now being quoted at $4 billion.

For context, U.S. Steel’s Big River 2 mill in Osceola currently holds the title of Arkansas’s largest economic development project at $3 billion.

Beyond the data center itself, Google plans to invest in Arkansas’s education and workforce development. In partnership with the state’s Department of Commerce, the company will offer artificial intelligence training and credentials to more than 10,000 Arkansans. Additionally, all college students in the state will gain access to Google’s AI Pro Plan, which provides advanced AI-powered collaboration tools.

Leaders Hail the Move

While The Memphis Business Journal first reported the story in May and Google had been mentioned several times as the force behind the scenes, leaders had largely remained quiet to keep the details under wraps. Now,  Google and Entergy Arkansas confirmed that the tech giant is moving forward with plans for a multibillion-dollar data center in West Memphis, and authorities welcomed the agreement.

“Google’s multi-billion-dollar investment in West Memphis is one of the largest investments ever in our state and an incredible testament to the work my administration has done to build Arkansas’ energy capacity, invest in our workforce, and streamline regulatory processes,” said Governor Sarah Huckabee Sanders. “Here in the Natural State, we are providing great businesses like Google with an environment where they can innovate, expand, and invest in the hardworking people who are the backbone of our state’s economy.”

The announcement generated excitement, particularly from the Mayor of West Memphis, who highlighted the project’s potential to strengthen infrastructure, improve schools, and retain local talent.

“This is a historic day for West Memphis and Crittenden County. Google’s investment brings not only high-tech jobs but a true partnership centered on our people,” said Mayor Marco McClendon.

“From the beginning, we’ve worked together to make sure our priorities like air quality, water, and quality of life were protected. This project shows Google’s real commitment to our community’s long-term success and marks a defining step in making West Memphis a hub for technology and economic growth for decades to come.”

Powering the Data Center

Power is always a major concern and often draws criticism when discussing data centers, but here there is a clear plan, and agreements are already in place. Google’s regional head of data center public affairs, Laurel Brown, confirmed the plans alongside Entergy Arkansas CEO Laura Landreaux.

“Entergy Arkansas - not West Memphis’ electric utility - will provide power to the facility via a solar array and existing generation,” the officials said, addressing electricity use and its impact on ratepayers.

Google emphasized efforts to “keep rates down for ratepayers,” while Entergy highlighted that “large customers” help lower prices for everyone.

Andrew Marsh, president and CEO of Entergy Corp., the parent company of Entergy Arkansas, said the deal would deliver “$1.1 billion in benefits for existing Entergy Arkansas customers over the life of its contract with Google.” Google added in a press release that the agreement was “designed to put downward pressure on electricity rates for Entergy Arkansas customers.”

“We’re proud to partner with Google to bring unprecedented economic opportunity to Arkansas,” said Entergy Arkansas President and CEO Laura Landreaux. “Google’s $4 billion investment in its new facility, its $25 million Energy Impact Fund, and its investment in the future of our students demonstrates the lasting impact a project of this magnitude can have.”

Google and Entergy plan a 600-megawatt solar field with 350 megawatts of battery storage in Jefferson County, named the Arkansas Cypress Solar project, not to be confused with NextEra Energy’s Big Cypress Solar Energy Center in Crittenden County.

Entergy also hopes to apply the new Generating Jobs for Arkansas Act to this solar project and a planned natural-gas generation unit in Redfield. The law allows utilities, with regulatory approval, to bill customers for major projects as they are built rather than after they come online.

Arkansas Prepares Ground for More Investment

Arkansas has been laying the groundwork for expanded investment in the data industry, with further legislation to support development expected in the coming years. In April 2023, lawmakers passed House Bill 1654 (Act 819), providing sales and use tax exemptions for qualified data centers. These exemptions apply to equipment, construction costs, certain services, and electricity used by the facility. The legislation also broadened tax abatements to include expansions or additions to existing facilities.

The state offers businesses a strong combination of government support, affordability, operational reliability, and regional accessibility. Arkansas’s central location provides a strategic advantage, enabling low-latency connections to major markets such as Dallas, Memphis, Kansas City, and beyond. Companies operating from the state can efficiently reach customers across the South, Midwest, and East Coast, improving service delivery and reducing network response times over a wide footprint.

According to the Data Center Map, Arkansas currently hosts six data centers. Construction of the West Memphis facility is expected to take up to two years, with additional billion-dollar projects planned in Little Rock and Conway. This steady growth, combined with supportive state policies, positions Arkansas as an attractive option for companies seeking dependable colocation services outside major metropolitan hubs.