Entergy Arkansas fails to block reporting on Google data center power contract

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Highlights

Judge Lee Rudofsky denied Entergy Arkansas' emergency request to block publication of confidential Google data center power contract details, citing First Amendment concerns.
Public filings reveal Google will pay Entergy Arkansas $526 million upfront for the Cypress Solar project, covering about one-third of the $1.6 billion cost and locking in a special rate approved in December.
Entergy claims Google’s agreement will generate over $1.1 billion in net benefits for Arkansas customers in 20 years and trigger a $5.77 monthly bill increase for residential customers starting June.

Court rejects temporary publication ban

As reported by CNBC, a federal judge in Arkansas denied Entergy Arkansas' request for a temporary restraining order that would have blocked the Arkansas Democrat-Gazette from publishing additional details from confidential documents tied to the utility's role in powering the Google project.

Judge Lee Rudofsky also declines, for now, to order the newspaper to remove information already published online. At a hearing in Little Rock, he says Entergy appears to have a strong case, but adds that the First Amendment makes him hesitate and that it would take a great deal for him to impose prior restraint.

A court filing shows Rudofsky denies the emergency request on Wednesday and plans to set a later briefing schedule on Entergy's bid for a preliminary injunction. Entergy's complaint seeks to restrain the Democrat-Gazette, reporter Sydney Sasser, document requester Jessica Kivell, and the Arkansas Times and its editor from further disclosing what the company describes as trade secrets and highly sensitive protected information.

Entergy says the Arkansas Public Service Commission disclosed the documents in error after Kivell requested them under the state's Freedom of Information Act. The Democrat-Gazette then publishes a report saying Google will pay Entergy Arkansas $526 million for a solar facility supporting the West Memphis data center, while the Arkansas Times says neither it nor its editor possesses the disputed documents.

Power project economics and Arkansas impact

The published details focus on Cypress Solar, described as a 600-megawatt solar field and 350-megawatt battery facility that will feed the grid serving Google's data center. The report says the $526 million payment covers about one-third of the project's $1.6 billion cost, and notes that the Arkansas Public Service Commission approved a special rate contract between Google and Entergy in December.

The underlying arrangement carries broader implications for Arkansas electricity customers. The Democrat-Gazette report says Entergy residential customers begin paying an added $5.77 a month in June to support three new generation projects, including Cypress Solar.

Entergy says the publication of incomplete confidential contract details violates laws protecting business information and could make it harder to attract new companies to the state. At the same time, the utility argues the project benefits customers because Google is paying its full cost of service and funding required grid upgrades through upfront payments and monthly bills, which Entergy says will reduce future bills for existing customers by more than $1.1 billion over the next two decades.

Google, which is not a party to the lawsuit, says it is fully committed to covering 100% of the power and infrastructure costs for the West Memphis facility. The company says the $526 million upfront payment is only part of a 20-year agreement under which its monthly rates fully fund its operational footprint and generate more than $1.1 billion in net benefits for Arkansas residents.

Our earlier article on the growing backlash against large U.S. data center projects outlined how community and political resistance is intensifying as power demand from hyperscalers rises. We noted that utilities and investors are increasingly focused on ensuring new computing load does not push up rates for existing customers, and that policy and election risks are already delaying or derailing some projects.

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