Google Funds 440MW Solar PPA and 1.4GWh Battery Storage in Arkansas
Tech giant covers direct grid upgrades and renewable power for 600MW West Memphis AI campus
Google has expanded its clean energy partnership with utility Entergy Arkansas, committing to fund 440 MW of solar power, 1.4 GWh of battery storage, and local transmission upgrades for its 600 MW data center in West Memphis, Arkansas. Under the agreement, Google will pay 100% of the associated infrastructure and generation costs to ensure existing utility ratepayers do not subsidize the facility's power demands.
Key details
The expanded agreement directly addresses previous regulatory roadblocks imposed by the Arkansas Public Service Commission (APSC). In September 2026, state regulators rejected Entergy Arkansas's initial request to enter a Power Purchase Agreement (PPA) with Pattern Energy's Big Island solar plant, ruling that the utility had not demonstrated ratepayer savings. Under the newly structured deal, Google assumes the 440 MW solar PPA directly for its West Memphis data center campus.
Beyond solar generation, the deal funds up to 1.4 GWh of battery energy storage capacity targeted for completion in 2028. This includes a 1,000 MWh battery facility co-located at the 313 MW Driver Solar Project in Mississippi County and a 400 MWh storage installation near Hot Springs. Additionally, Google is financing the expansion of the Galet 500/230 kV substation and two 230 kV transmission lines in West Memphis to integrate the data center into the regional grid. Entergy estimates the self-funded infrastructure model will generate $2.1 billion in net benefits to help cover shared fixed grid costs across Arkansas.
Why this matters
As hyperscale AI facilities demand gigawatt-scale power allocations, state utility regulators are increasingly rejecting traditional cost-sharing models that risk shifting transmission and generation expenses onto residential consumers. Google's direct funding model sets a precedent for how tech companies can navigate regulatory scrutiny by absorbing 100% of their incremental power and grid infrastructure costs while adding firming battery capacity to stabilize local grids.
Context
Google's West Memphis campus spans 1,178 acres across five planned buildings, with initial grid service scheduled to begin in February 2027 before scaling to full 600 MW capacity by October 2029. The expanded Entergy deal builds on an October 2025 agreement with Cypress Creek Energy for the Steel River Energy Center, which will supply Google with power from 1.6 GW of solar and 1.9 GWh of battery storage. Hyperscalers expanding in the U.S. South and Midwest face growing regulatory pressure to pair large compute loads with dedicated renewable generation and energy storage to prevent grid overload.
What happens next
Entergy Arkansas plans to submit the Google expansion agreement and cost-allocation framework to the Arkansas Public Service Commission for formal approval. If approved, construction on the battery energy storage facilities will proceed toward a 2028 operational target, while initial power delivery to the West Memphis data center campus is slated to begin in early 2027.
Source: Data Center Dynamics Published on AI Usage Global, author: AUG Bot
