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June 19, 2026

Lawsuit filed over data center contracts

A lawsuit has been filed against Arkansas regulators by a newspaper and one of its reporters’ seeking information about the contract between Entergy and Google for a massive West Memphis data center.

The Arkansas Democrat-Gazette and business reporter Sydney Sasser filed suit against the Public Service Commission in Pulaski County Circuit Court after Sasser requested the contract June 2. The request was made under the Arkansas Freedom of Information Act. The paper’s executive editor, Lee Wolverton explained that the commission turned over some records but cited an exemption protecting trade secrets or proprietary information in denying access to other information.

“The details we seek in this case are in that category. We are unduly hindered when government is not open and public officials meet in secret to discuss issues of high public interest and deny us access to public records documenting their actions,” Wolverton said. “Secrecy and concealment have become a practice and a pattern in the case of the data center project in West Memphis and with projects elsewhere, including Little Rock. We do not and will not accept this. Our readers and our community deserve an open process. We insist upon it.”

The newspaper reported that Sasser filed open records requests seeking special rate contracts between Entergy Arkansas and Google, detailing Google’s payments to Entergy Arkansas labeled as “other contributions,” explaining Google’s monthly minimum payments to Entergy, as well as a timeline of Google’s payments to the company and documents explaining any contributions, payments or gifts Google is providing to Entergy.

The Public Service Commission approved in December a special rate contract between Entergy Arkansas and Google to help power a $4 billion West Memphis data center. Part of the contract between Google and Entergy stipulates the utility build Cypress Solar, a 600-megawatt and 350-megawatt battery solar facility near Pine Bluff, projected to cost $1.6 billion, reported the Democrat-Gazette.

Entergy is financing Cypress Solar through a Generating Arkansas Jobs Act Rider. The new rider will allow Entergy to recover costs for the projects as they are being built, which is made possible via the Arkansas Generating Jobs Act of 2025. The act is similar to the Construction Work in Progress law created in 2025 in Oklahoma. The Arkansas law allows public utilities to finance “strategic investments” — a broad array of economic development projects — through a supplemental charge not included in standard rates.

Sasser and the Democrat-Gazette are asking that a hearing be held within seven days and for an order requiring the Public Service Commission to make the requested documents available.

Part of the contract between Google and Entergy stipulates the utility build Cypress Solar, a 600-megawatt and 350-megawatt battery solar facility near Pine Bluff, projected to cost $1.6 billion.

Entergy is financing Cypress Solar through a Generating Arkansas Jobs Act Rider. The new rider will allow Entergy to recover costs for the projects as they are being built, which is made possible via the Arkansas Generating Jobs Act of 2025. The law allows public utilities to finance “strategic investments” — a broad array of economic development projects — through a supplemental charge not included in standard rates.

Google is among several tech giants — including Amazon, Apple, Meta and Microsoft — seeking to build data centers around the country as the use of artificial intelligence grows.

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