Arkansas Communities Push Back Against Data Center Expansion Plans
Finn's Take· TL;DR- Data centers can raise local temperatures by 3.6 degrees average, consuming up to 5 million gallons daily—equivalent to water for 10,000-50,000 people.
- Projects promise $1 billion+ investments and 150+ jobs with millions in annual tax revenue, but economists question need for large tax incentives.
- Water utility confirms infrastructure can handle demand without rate increases for residents, though wetland impacts and environmental concerns remain disputed.
Environmental Concerns Mount Over Tech Giants' Plans
Large tech companies are building huge buildings filled with computers that take up a lot of space and draw a lot of power and water, which has set up local battles when companies like Google try to build, including here in Arkansas. Just this week, advocates for proposed centers in Pulaski County touted what they would do to regulate these types of centers that would be built in unincorporated parts of the county.
Dr. Emily Lane, a professor of environmental health at UCA, said that these centers can cause major health and environmental impacts. "So, I analyzed EPA data for communities within a 6.2-mile radius of the site because, as has previously been stated, heat impacts large AI data centers may extend that far out." That same research showed that surrounding temperatures increase an average of 3.6 degrees, with some areas seeing increases as high as 16.4 degrees.
Large data centers can consume up to five million gallons per day, according to the Environmental Study and Energy Institute. That is equivalent to a town populated by 10,000 to 50,000 people. These massive facilities power the artificial intelligence systems that answer our daily questions and promise revolutionary technological advances.
Economic Benefits Clash With Community Fears
What's known in economic development circles as Project Pulse will see a data center campus built just south of Arkadelphia. At least $1 billion will be spent, and the project will create 150 high-paying jobs. Google has plans to build a data center at the Port of Little Rock with an initial investment of $1 billion, while AVAIO is also developing a $6 billion data center to be built in Pulaski County near Wrightsville.
At Google's initial investment, total property taxes for the project will be $4.5 million. The county's revenues could be $493,500 and the total city revenues could be $1.853 million. One building would contribute annually over $2.8 million to the Pulaski County Special School District.
Arkansas's appeal to these types of centers is the lower cost of energy, but when it comes to some proposed tax relief, it might be necessary. "I'm not sure you really need to be offering big tax breaks to get companies to come; they're going to want to put them anywhere. They're going to want to put them in places that have good energy infrastructure and low energy costs. I think Arkansas is already well-positioned enough that we don't, probably don't need to offer huge tax breaks to them," said economics professor Jeremy Horpedahl.
Water Usage and Infrastructure Strain
Central Arkansas Water has a water treatment capacity of 157 million gallons per day. On an average day the water utility treats 67 million gallons, and peak daily demand is about 126 million gallons. "Before any large user, including a data center, is connected, our highly skilled engineers confirm that the system can handle the demand safely and reliably," said CEO Tad Bohannon.
Central Arkansas Water will supply water for both data centers and likewise says its customers won't see their rates increase because of the maximum 4 million gallons a day expected to be supplied to each data center. C-A-W says that water demand won't put a strain on its existing supply and Google and AVAIO will cover the cost of any system upgrades.
The corps is taking public comments on a proposal to permit the dredging and filling of 16 acres of wetlands near Fourche Bayou to make way for the data center, which is being developed by Willowbend Capital. In its application with the corps, Willowbend wants to fill wetlands and streams on the site that would have impacts on endangered species like monarch butterflies.
The Path Forward
The debate reflects a broader national conversation about balancing technological progress with environmental stewardship. While supporters emphasize job creation and tax revenue, critics worry about long-term consequences for Arkansas communities. Noise levels from data centers are also of public concern. The port data center site is about 1½ to 2 miles away from closest neighborhood, and the AVAIO data center is about half a mile away from a school. Google will be governed by the city's noise ordinances, and the company has pledged to meet or better them. AVAIO has pledged to commission a noise study and will incorporate mitigation designs into the facility so neighbors are not affected.
As Arkansas positions itself as a tech hub, the challenge lies in ensuring these massive investments deliver promised benefits without compromising the natural resources and quality of life that define the Natural State. The coming months will test whether state and local leaders can craft regulations that protect both economic opportunity and environmental integrity.