Google to Fund $600m Entergy Arkansas Grid Upgrades

Google will pay for about $600 million of new grid investment and a solar power purchase agreement to support the second phase of its West Memphis data centre campus in Arkansas, utility Entergy Arkansas said on 19 October 2026. The package includes two battery storage systems, substation and transmission upgrades, and a 440MW solar PPA.

The deal still needs approval from the Arkansas Public Service Commission. Entergy says the expansion will bring “at least $500 million in new customer savings starting in 2028 and extending over 20 years”, though that is the utility’s own estimate. The arrangement is part of a growing trend of tech companies paying directly for the grid capacity their data centres need, as regulators worry about costs being passed on to households.

In brief

Entergy Arkansas says Google will cover approximately $600 million in planned investment and a 440MW solar PPA to support the second phase of its West Memphis campus.
Entergy claims the project will bring at least $500 million in new customer savings over 20 years from 2028, on top of $1.6 billion it cited for phase one.
The plan needs Arkansas Public Service Commission approval; the expected in-service date is 2028, pending that approval.

What Google is paying for

According to Entergy, the upgrades “require approximately $600 million in planned investment and a power purchase agreement, both of which will be covered by Google”. They include:

“A 1,000 megawatt-hour battery energy storage system at Driver Solar near Osceola (Driver), expected to be online in 2028.”
“A 400 megawatt-hour battery energy storage system near Hot Springs (Jones Mill), expected to be online in 2028.”
“A 440 megawatt (ac) solar power purchase agreement from the Big Island solar facility being constructed in Mississippi County.”
Expansion of the Galet substation near West Memphis and two new 230kV transmission lines to serve the expanded campus.

Entergy says the project “will fulfill Google’s plan for data center buildings on the site and accelerate the ramp-up of the original announced project.” Google is paying under a new contract, and the new resources will not be charged through the Generating Arkansas Jobs Act Rider.

The Big Island solar backstory

The solar PPA has a history. Entergy says it “was added based on Arkansas Public Service Commission guidance from the initial filing of the resource.” According to DCD, the commission in early September denied Entergy Arkansas’ own request to enter a PPA with the Big Island plant. It ruled that Entergy had not shown the contract’s costs were reasonable or that it would save customers money compared with other options.

DCD reports that Google has now signed for the entire capacity of the plant, developed by Pattern Energy, which broke ground in July. It describes the West Memphis data centre as a 600MW facility.

Who pays, and the savings claim

Entergy says Google will pay the full cost of the new resources through the 20-year term of its contract, so other customers receive the capacity and energy without paying to build it. It adds: “There will be no bill increase associated with this project.” Across both phases, Entergy says the agreement is expected to return “more than $2.1 billion” in savings to its 738,000 customers.

“We are delivering on our promise to all Entergy Arkansas customers to create value for everyone we serve by ensuring Google is not only paying 100% of its power needs but is also contributing to the existing grid and lowering the costs for everyone else,” said Laura Landreaux, president and chief executive of Entergy Arkansas.

Amanda Peterson Corio, Google’s global head of energy and power, said: “By funding new solar, battery storage and transmission capacity, we’re helping deliver savings to Entergy Arkansas customers, while directly supporting energy affordability, grid reliability and local economic growth across the West Memphis community.”

Our read

Paying for grid upgrades up front is fast becoming the price of entry for hyperscale data centres, and this deal is a clear example. The commission’s September rejection of Entergy’s own Big Island contract, as reported by DCD, shows regulators are scrutinising whether such arrangements truly protect other customers. Its review of this filing, and whether it accepts Entergy’s savings estimate, will decide whether the 2028 timeline holds.