West Memphis Tries For $3B Data Hub

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What is this we hear of West Memphis landing in consideration for a $3 billion data center?

The project would rival the nearly completed Big River Steel 2 plant in Osceola as the biggest economic development project in Arkansas history.

But the data center plan is tentative.

The West Memphis City Council passed a nonbinding resolution this month as its opening gambit, informing the mystery shell company planning the center that the city is interested.

City officials told the council July 11 that the project could deliver as many as 300 strong-wage jobs in West Memphis, a city of about 25,000.

Few details are available about the project because the city has a nondisclosure agreement with the development company, West Memphis Communications Director Nick Coulter told Arkansas Business.

The company named on the resolution is Spark Innovations LLC, a shell company listed in Delaware.

Ward Wimbish, general manager of West Memphis Utilities, the municipal power and water company, said the mystery company is looking at a site behind the Coca-Cola Vending warehouse at 1400 Rainer Road.

Wimbish said the city utility could be asked to provide 10 megawatts of power for the center, but that Entergy Arkansas would supply the bulk of the electricity-hungry project’s load.

Wimbish, who told council members that he considers West Memphis the top contender among several cities hoping to land the data site, also said the city utility would supply the data center mostly with reprocessed water from its sewage treatment plant.

Wimbish did not respond to a request for comment, but Coulter told Arkansas Business that discussions so far are preliminary.

“Unfortunately, we’re under a strict NDA and can’t provide specific details,” Coulter said. He described the agreement as a “very preliminary and standard step for the project team.” Several sites are in the running, he said, “with us being one of them.”

Coulter said the project, if it comes to fruition, will be built inside West Memphis’ city limits.

“Once fully developed, it could potentially create up to 300 jobs and require a capital investment of $3 billion,” he said.

Coulter also confirmed that Entergy Arkansas “will be the energy provider, though their exact power requirements are still being assessed.”

Modern data centers are vast physical sites loaded with computer servers and related hardware. In short, they house all the equipment information technology systems need to compute, network and store data.

Experts say the centers, artificial intelligence hubs and digital currency mining sites use an estimated 1.5% to 2% of all electricity generated worldwide. Large and hyperscale data centers can cover 100,000 to several million square feet and use 20 to 100 megawatts of power.

For context, consider that the Arkansas Nuclear One power plant, Entergy Arkansas’ workhorse power plant in Russellville, has a nameplate generation capacity of 1,824 megawatts. And with a $3 billion price tag, the West Memphis project could certainly be large or hyperscale.

Arkansas’ low electricity rates, particularly for bulk power, make it attractive for energy-intensive businesses.

Asked about the West Memphis project, Entergy spokeswoman Heather Kendrick said it would be inappropriate to give any specific details about a prospective customer. But, she said, “We have a dedicated team that works with existing and prospective customers, our state, and our communities on economic development projects, large and small.”