Data centers and Entergy customers

A new large customer – like a data center – added to the system helps pick up a big part of the grid maintenance and improvement costs that existing customers would otherwise have had to bear alone…reducing residential and small business customer power bills in the process.

Saving customers billions over the next two decades

When it comes to powering data centers, we’re protecting all Entergy customers. Data centers that move to our region must meet our guiding principles to ensure that they pay their fair share for the power they use plus create additional savings or benefits for existing customers on the power grid.

Entergy’s agreements with data center customers are structured to benefit all customers while also protecting existing customers from risks. We have ensured provisions in our customer agreements like prepayment requirements, multi-year contract terms, credit and collateral requirements, and early termination penalties to protect our existing customers.

Fair Share Plus guiding principles

Sufficiently long contract term for service agreement

Ensure the recovery of adequate revenues from the data center customer to cover the cost of new infrastructure required to serve them and that assets remaining at the end of the term either will be cost effective for all customers or are paid for by the data center if not needed by other customers.

Strong collateral requirements

Ensure the data center customer’s payment obligations to the utility are backed by sufficient credit, including liquid collateral such as cash deposits and letters of credit, coupled with guarantees from the ultimate company that owns the subsidiary data center customer; this provides a strong backstop to ensure the cost to serve the customer will actually be recovered from the customer itself.

Guarantee adequate revenues

Ensure that the rates charged to the data center customer are adequate to cover their incremental cost to serve during the contract term and the cost of the existing power grid upon which they rely and preserve the utility’s financial health, particularly its access to capital on reasonable terms to meet the needs of all customers.

Maintain grid reliability

Ensure that reliability to the power grid is not put at risk for existing customers by making sure the timing of the addition of any new large customer’s load aligns with the timing of new generation becoming available.

Maintain power quality

Ensure that data centers are obligated to install necessary equipment to protect the grid from power quality issues that can occur due to the size of their electric load.

Clean power support

Data centers have a track record of supporting clean energy, including nuclear power; our electric service contracts should ensure this commitment is met.

Strong state regulatory oversight

Ensure that the state public service commission maintains oversight on the prudence of costs incurred to serve the data centers so that all customers know that monies are being spent wisely and that the utility is administering its electric service contract in accordance with the public interest.

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.”

David RosnerU.S. Federal Energy Regulatory Commissioner–S&P Global

“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.”

Chris WrightU.S. Department of Energy Secretary–The Wall Street Journal

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

The Washington PostRead the news story

“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.”

Tate ReevesGovernor, State of Mississippi–at a groundbreaking ceremony in Vicksburg, Mississippi

“Louisiana has some of the lowest power rates in the country, and Entergy’s commitment to having data centers pay their fair share will help us maintain that success.”

Jeff LandryGovernor, State of Louisiana–X

“President Trump’s Ratepayer Protection Pledge continues to deliver! Today, Entergy announced $5 BILLION in electricity cost savings are coming to ratepayers in Mississippi, Arkansas, and Louisiana.”

U.S. Department of EnergyFacebook

“Entergy says new data center agreements could deliver $5B in savings for 2M+ customers in AR, LA, and MS. Why it matters: large power users helping cover grid costs instead of shifting them to families.”

Consumer Energy AllianceX

“We’re proud to spotlight Entergy, a valued member of the CBC Institute’s 21st Century Council, for announcing a landmark initiative expected to deliver $5 billion in customer savings through new data center agreements . . . Congratulations to Entergy for demonstrating how responsible leadership and forward-thinking investments can create real value for customers and communities alike.”

Congressional Black Caucus InstituteLinkedIn

“Louisiana has been a national model for showing that data center projects can be structured in a way that not only protects the power reliability of existing customers on the power grid, but provides them with real savings, too.”

Jeff LandryGovernor, State of Louisiana–X

“The investment is here. The progress is real. The partners involved have kept their commitments, and we will hold them to every one going forward. That means workforce pipelines that reach working families, small business support that opens doors for people who have never had them, and infrastructure investment that ensures every corner of this region and this state feels the benefit, not just the burden.”

Friday EllisMayor, City of Monroe, Louisiana–The Ouachita Citizen

“The hyperscalers are telling their shareholders and telling Wall Street every quarter that they need to spend more, build more, build more compute, and that’s how we win this thing. And we, as an administration, and the states, and the utilities, like Southern Company and Entergy in Louisiana, are doing a great job meeting that demand. The demand is there from our incredibly innovative technology sector. And we’re doing everything possible to set the stage for their success, and companies like Entergy and Southern Company are rising to meet that challenge.”

Peter LakeSenior Director of Power, National Energy Dominance Council–Axios Live: Electricity in Transition: Strengthening the Grid for What’s Next

“Newly published research finds no meaningful link between the number of data centers in a state and its electricity prices and points instead to a far less glamorous culprit: bad state energy policy.”

The Daily EconomyRead the news story

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Recent Entergy data center news

Data Center Website Announcement

May 20, 2026

Local partners working together to support transparent, fact-based communications announced the launch of LRDataCentersFacts.com, a new public information website designed to address community questions and concerns about proposed data center developments in the Little Rock area.

Entergy Arkansas, Google and ICF partnership helps unlock energy savings for Crittenden County residents

Apr 29, 2026

A new partnership between Entergy Arkansas, Google and ICF is helping remove barriers that have prevented many families from accessing energy efficiency upgrades—bringing meaningful savings and support to Crittenden County residents.

Amazon expands, and Entergy Mississippi stands ready to deliver benefits for all our customers

Apr 9, 2026

This week’s announcement by Amazon that they are doubling their investment in Mississippi is good news for everyone in our state. Entergy Mississippi’s planned grid investments will support Amazon’s expansion while strengthening reliability for customers across the 45 counties we serve.

Entergy Louisiana announces a new agreement with Meta that will deliver an additional $2B in customer savings

Mar 27, 2026

Entergy Louisiana today announced an additional agreement with Meta to support the hyperscale data center in Northeast Louisiana. Structured to ensure Meta pays its full cost of service, the agreement is expected to deliver approximately $2 billion in customer savings to Entergy Louisiana customers over 20 years, in addition to the $650 million previously announced.

Family and friends share a laugh at an outdoor dinner table under string lights.

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

Mar 5, 2026

Approximately $5 billion in total savings for 2.3 million Entergy customers because of data center customer agreements in Arkansas, Louisiana and Mississippi.

What they’re saying: Data center boom will ultimately drive down electricity costs

Dec 18, 2025

Two United States government officials recently spoke about how the demand for powering artificial intelligence and the country’s data center growth will make electricity cheaper in the long run.

From the White House

Read the press release from the White House that quotes Entergy Chair and CEO Drew Marsh.