Entergy Arkansas and Google have agreed on a second phase of power infrastructure for Google's data center campus in West Memphis, the utility announced on Oct. 19, 2026. The package pairs two battery storage projects and a solar power purchase agreement with a substation expansion and two new transmission lines. Entergy put the work at roughly $600 million in planned investment plus the PPA, "both of which will be covered by Google." The expansion still has to go to the Arkansas Public Service Commission for approval.

The deal extends an arrangement that began a year ago. Google announced the first phase of the West Memphis campus on Oct. 2, 2025, committing $4 billion through 2027 to a cloud and AI data center on 1,100 acres near the Tennessee line, Route Fifty and the Arkansas Advocate reported. At that ceremony, Entergy Corp. President Andrew Marsh said the contract would produce "$1.1 billion in benefits for existing Entergy Arkansas customers over the life of its contract with Google." Entergy now cites $1.6 billion in customer savings from that first phase under its Fair Share Plus pledge.

The resources in phase two

Entergy Arkansas's announcement lists five components:

  • Driver Solar battery, near Osceola: 1,000 MWh of battery storage, expected online in 2028.
  • Jones Mill battery, near Hot Springs: 400 MWh of battery storage, expected online in 2028.
  • Big Island solar PPA: a power purchase agreement for 440 MW (ac) from the Big Island solar facility in Mississippi County.
  • Galet substation, near West Memphis: an expansion.
  • Two new 230-kV transmission lines.

The battery figures are megawatt-hours, a measure of stored energy, while the Big Island figure is megawatts of generating capacity, so the two can't be added together. Counting the Arkansas Cypress Solar and Battery facility under construction in Jefferson County, Entergy said the resources add more than 1,000 MW of solar and 2,800 MWh of battery storage.

Big Island was not part of the original plan. Entergy said the PPA was added in response to Commission guidance on its initial filing, and Little Rock station KARK, in a report carried by Yahoo News, quoted officials as saying the new filing "incorporates commission recommendations aimed at increasing transparency."

Who pays

The central claim of the announcement is that Google, not other ratepayers, carries the cost. Talk Business & Politics reported that Google will pay "the full cost of the resources needed to support the additional service" through the 20-year term of its contract, while other customers receive the capacity and energy those resources provide.

Entergy Arkansas estimates phase two will deliver at least $500 million in new customer savings over 20 years, starting in 2028. Added to the phase-one figure, the utility says Google's agreements yield $2.1 billion in net benefits toward fixed costs shared by all customers. Entergy Arkansas serves about 738,000 customers in 63 counties.

The release also states that "The new resources will not be charged through the Generating Arkansas Jobs Act Rider." The contract terms themselves are not public, but Entergy said every provision will be visible to the Commission, its Staff and the Arkansas Attorney General.

What the parties said

"Google is increasing its investment in West Memphis and building on the significant success of its first phase," Laura Landreaux, president and CEO of Entergy Arkansas, said in the announcement.

Amanda Peterson Corio, Google's global head of energy and power, said in the same release: "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."

West Memphis Mayor Marco McClendon said, "This partnership represents more than economic growth."

The release also carried comments from Kevin Smith, CEO of Cypress Creek, whose Steel River Solar project in northeast Arkansas is a separate agreement between Google and Cypress Creek Energy rather than part of the Entergy package, KARK reported.

Community funding

Google's $25 million Energy Impact Fund, first announced with phase one, supports energy affordability and workforce education in West Memphis and Crittenden County, according to Entergy. KARK reported that Google is making donations to 10 area nonprofit organizations through the fund. Google also announced $5 million in energy affordability initiatives tied to the Steel River project in July.

What Happens Next

Entergy Arkansas will file the phase-two expansion with the Arkansas Public Service Commission for approval. No docket number or hearing schedule has been announced yet. Pending approval, the utility expects the new resources in service in 2028.

Sources