Data centers and Entergy

Bringing big benefits to our communities

The growth of new high-tech industry projects like large, energy-intensive data centers in our region brings benefits to all our customers that will improve lives and our communities for generations to come. The data center projects that we agreed to power between 2024 and 2025 alone are generating an estimated $5 billion in total savings for 2.3 million customers in the states where they’re located ─ Arkansas, Louisiana and Mississippi. Most notably:

  • High-tech partners = Lower cost power
  • Infrastructure improvements that benefit all customers
  • New jobs and economic opportunities for our states
  • Increased community investment and charitable giving

When hyperscale data centers locate in the Gulf South region, all customers connected to the grid benefit – every new large customer added to the system helps pick up more of the grid maintenance improvement costs that existing customers would otherwise have to bear alone and at a larger share than residential and small business customers.

We’re committed to ensuring that the data center projects we power create benefits not just for our other customers, but for residents of these states for generations to come.

Our Fair Share Plus pledge to customers

We are safeguarding all of our customers when it comes to powering data centers. Our Fair Share Plus pledge outlines the guiding principles that inform our agreements with large data centers and are designed to ensure that data centers pay their fair share for the power they use plus produce additional savings or benefits for existing customers on the power grid. Those principles are:

  • Sufficiently long contract term for service agreement
  • Strong collateral requirements
  • Guarantee adequate revenues
  • Maintain grid reliability
  • Maintain power quality
  • Clean power support
  • Strong state regulatory oversight

How data centers help current residents

The economic and community benefits of the data center projects we serve are expected to be transformative for their states. The projects we secured between 2024 and 2025 alone are expected to generate approximately $47 billion in total new investment for communities in the region, thousands of high-tech jobs, millions of dollars in new tax revenues, improved local infrastructure, spin-off new business and employment opportunities, and a substantial influx of new philanthropic support for schools, non-profits, low-income families, workforce development and other state and community needs.

Millions of customers, regardless of whether they live near the projects, will benefit from data centers joining our grid, including new projects to strengthen the overall energy grid, reduced bill impacts from those grid infrastructure projects, residential customers paying a smaller share of the cost for new power generation facilities and lower bill fees for storm recovery work.

High-tech partners = Lower cost power

Data center customers are paying to connect their facilities to our grid. There is no mark-up cost to customers on the service we provide, including any charges for purchasing fuel to power our plants. In addition, new large industrial customers help pick up a larger share of the grid maintenance improvement costs that residential and small business customers would otherwise have to bear alone.

The data center projects that we agreed to power between 2024 and 2025 alone are generating an estimated $5 billion in total savings for 2.3 million customers in Arkansas, Louisiana and Mississippi because of data center customer agreements in those states.

  • Mississippi: $2 billion+
  • Arkansas: $1.7 billion
  • Louisiana: $800 million

Infrastructure improvements that benefit all customers

The large amounts of electricity these data center facilities require has raised questions nationally about how that will impact the price and reliability of power for existing electric customers.

We enter into thoughtful data center customer service agreements that require them to pay the direct power costs to serve their facilities and provide added benefits for existing customers. Additionally, the state public service commissions for Arkansas, Louisiana and Mississippi have exercised oversight to ensure these and future data center projects do not negatively impact electric customers in their states who are sharing the same power grid.

In addition, new large industrial customers help pick up a larger share of the grid maintenance improvement costs that residential and small business customers would otherwise have to bear alone. For example, in Arkansas, Google has agreed to support the construction of a new 600-megawatt solar and 350-megawatt battery facility that will further diversify Entergy Arkansas’s power portfolio, which will provide power to all customers. And Entergy’s Superpower Mississippi plan will deliver $300 million in new grid improvements at no additional cost to Entergy Mississippi customers because of new revenues from Amazon and other large industrial customers’ investments in the state.

New jobs and economic opportunities for our states

The decisions of these global tech giants to establish their new operations in the Gulf South region cast a new and brighter economic development spotlight on our states, helping them become preferred destinations for a new wave of high-tech industries.

The presence of such large operations in the states we serve will also bring new resources to support and uplift our communities, now and for generations to come. For example, Meta’s Richland Parish Data Center project is creating $200 million in investments to improve infrastructure including roads and water systems to support both its facility and the surrounding community.

Projects of this scale also produce billions in economic impact dollars that go back into their local communities, including millions in new state and local tax revenue that will bolster investments in infrastructure and public services like roads, hospitals and schools. These investments also generate high-paying job opportunities, training for individuals so that they can qualify for those new positions, and workforce development.

For example, Amazon’s planned $10 billion data center investment is estimated to generate $30 billion toward the state of Mississippi’s gross domestic product.

Increased community investment and charitable giving

These companies are also committed to investing in the people and communities in which they are located – better workforce development and training resources, investments in STEM education, and charitable contributions that directly serve residents.

For example, as part of our service agreement, Meta has pledged to annually match $1 million in shareholder contributions to The Power to Care, our bill payment assistance program for vulnerable customers, and to provide funds to improve educational resources in the state of Louisiana through its Data Center Community Action Grant program.

What they’re saying

“[R]ate design can solve these affordability problems. If you look at Entergy in Mississippi, they designed a rate for the tech company to pay for everything they need to connect the data center to the grid and a little bit more. We have to make sure the public knows we can solve this problem.”

“When people say, ‘AI is going to drive up my price of electricity,’ it’s actually the opposite,” Wright said. “The way to get electricity prices down is to produce more electricity.”

“There’s a reason electricity prices have been rising. And it’s not AI. It’s not even data centers.”

“Today, we are in a global race to secure leadership in the emerging industries of the future – and one of the most critical ingredients in this race is energy. A top priority of mine will be continuing to bring more available, affordable and reliable energy to our state. Entergy’s massive $1.2 billion investment will help us further solidify Mississippi as a leader in American energy production.”

Learn more

We work with state leaders and economic development organizations to help recruit new projects from the world’s leading tech companies to our service areas. These companies are driving the future of digital innovation, shaping how billions of people across the globe live, work and connect online every day.

Now, they’re investing in our states, bringing unparalleled benefits that will improve the lives of residents for generations to come.

Data center projects we’re serving:

Entergy Arkansas

Entergy Louisiana

Entergy Mississippi

Data center myths — busted

Any time economic developments of this scale are announced, there are bound to be questions about the impact on residents, and information being shared by outside parties is not always accurate. Here are a few of the most common myths about data centers that are circulating — busted.

Fact: New large industrial customers help pick up a larger share of the grid maintenance improvement costs that residential and small business customers would otherwise have to bear alone. Data center customers are also paying the cost to connect their facilities to our grid. There is no mark-up cost to customers on the service we provide, including any charges for purchasing fuel to power our plants.

Some of the infrastructure improvements that data center customers pay for produce additional benefits for existing customers, such as replacing old generation units slated to retire with new modern power plants. Replacing units sooner with new, more efficient modern power plants could save existing current customers billions of dollars on future bills.

While data centers may use a higher level of electricity in their day-to-day operations than most, they pay directly for the power they use. Some data center customers even prepay some of their cost of service as part of the service agreement with Entergy, generating even more savings for other customers. The data center customer agreements that we signed between 2024 and 2025 alone are generating an estimated $5 billion in total savings for our 2.3 million customers in Arkansas, Louisiana and Mississippi. 

Fact: The presence of data centers on our grid will not negatively impact reliability or service for other customers. The infrastructure improvements being made and additional generation resources being added to the grid to power these facilities will actually improve systemwide grid reliability. Maintaining grid reliability and power quality are core guiding principles in our Fair Share Plus pledge to our customers. Data centers need a large amount of electricity to operate, but before agreeing to power a new facility, we work extensively with the new data center customer to ensure that enough new power generation capacity and appropriate transmission upgrades will be added to the system to reliably supply additional demand on the grid while maintaining reliable service to our existing customers.

The fact that Entergy is a fully regulated public utility means that all major changes to our system and investments in our grid must comply with strict regulations. While some of the terms of these new data center customers’ service agreements are competitively sensitive to the customer and not publicly disclosed, utility regulators are able to review and evaluate all these terms. This extensive regulation is designed to ensure transparency and customer protections, for example, maintaining rates below the national average and ensuring continued reliable service.

And the additional revenue from sales of electricity to these new customers will provide us with more resources and financial flexibility to invest in the reliability of our electric system, such as hardening infrastructure like poles and lines to withstand more severe weather and adding new technological innovations like self-healing networks to the grid that benefit all customers.

Fact: Each Electric Service Agreement between one of our operating companies and an industrial customer like a data center is unique, and the terms are competitively sensitive to the customer and therefore confidential. Our Fair Share Plus pledge to our customers, however, includes guiding principles to ensure our data center service agreements include safeguards for our other customers, including sufficiently long contract terms, strong collateral requirements, and guaranteeing adequate revenue from the data center. Regulators oversee these arrangements to ensure that the interests of all customers are protected.

Recent news

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Entergy announces $5B in customer savings delivered by data center agreements; issues “Fair Share Plus” pledge

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