Little Rock Looks to Host $1B Data Center With Mystery Developer

A Google Street View image of Little Rock City Hall (© Google)

An unnamed company is looking to build a $1 billion, 300,000-SF data center in Little Rock, according to a resolution adopted by the city’s board of directors at a special meeting Tuesday.

The resolution authorizes Mayor Frank Scott Jr. to execute a memorandum of understanding with Willowbend Capital LLC, an entity that represents the company behind the project at the Little Rock Port.

The project would create about 50 jobs. Additional data center facilities could be built at the site if the “right economic, business, and market conditions exist,” the memo states.

The language in the agreement framework, the proposed scale of the project and the secretive nature of its development mirrors a $1 billion data center project in the works in Conway. The company behind that project hasn’t been disclosed, either.

But the Arkansas Democrat-Gazette reported that there is a link between the projects. Forgelight Ventures LLC, the company that entered into a memorandum of understanding with Conway, was incorporated by Michael Montfort, according to Arkansas Secretary of State filings.

Montfort is also listed as the incorporator/organizer of Willowbend Capital LLC.

Scott at Tuesday’s meeting recognized the Little Rock Regional Chamber, the Little Rock Port and lawyers from Friday Eldredge & Clark LLP of Little Rock for their roles in the project, but said he couldn’t share more details.

“There was a lot of work to get us this point. We can’t say much about it except for it’s a big deal,” he said. “It doesn’t happen without a great team of these individuals, including the Little Rock City Board of Directors.”

Under the arrangement with Willowbend Capital, the city would reduce the electric, water and sewer franchise fees for the development and support through future legislative and administrative actions a property tax abatement of at least 65% for 30 years for the project.

The city, Central Arkansas Water and the Little Rock Water Reclamation Authority would cooperate on infrastructure needs, including the design and permitting of a water supply extension to the site and a cooling tower system.

Other infrastructure improvements would include the extension of Zeuber Road.

Big tech companies including Amazon, Microsoft, Google, Meta and Oracle have committed billions to building data centers to meet the computing demands of artificial intelligence, machine learning and expanded cloud services, though some investments have been paused due to economic uncertainties.

The facilities can become drivers of economic development, serving as anchors for tech hubs, attracting additional investment and increasing demand for local services and suppliers.

But some communities have blocked the projects over concerns about pollution, water and energy demands, and a lack of transparency. Details about who’s involved in the projects and the kind of data being processed are frequently withheld from the public in the early stages of development.