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LCG, March 6, 2026--Entergy yesterday announced approximately $5 billion in total savings for 2.3 million customers in Arkansas, Louisiana and Mississippi resulting from data center customer agreements in those states. Entergy, which completed its first data center customer agreement in 2024, projects the customer savings over the next 20 years and after the regulatory approval or acknowledgement of the public service commissions in those states.
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Industry News
Entergy Estimates Customer Savings of $5B from "Fair Share Plus" Data Center Agreements
LCG, March 6, 2026--Entergy yesterday announced approximately $5 billion in total savings for 2.3 million customers in Arkansas, Louisiana and Mississippi resulting from data center customer agreements in those states. Entergy, which completed its first data center customer agreement in 2024, projects the customer savings over the next 20 years and after the regulatory approval or acknowledgement of the public service commissions in those states.
Entergy's chair and chief executive officer stated, "We proactively worked with our state leaders to recruit a new industry with attractive power agreements that protect and benefit our existing customers. Our respective public service commissions provided the collaboration, oversight and direction needed to make this emerging high-tech and electric future a win for everyone in our region. This public-private partnership is creating new, well-paying jobs, investments and community improvements for the people we jointly serve and will provide lower cost power in the coming years for our customers.
This announcement further supports the Trump administration's ratepayer protection pledge unveiled yesterday at the White House. We remain in close contact with the administration and look forward to our continued partnership to ensure these protections for our customers and do our part in helping the United States secure the energy it needs to extend its leadership in global AI advancements."
Data center projects in 2024 arrived in the Entergy region from five major technology companies: (i) AWS announced two campuses in Madison County, Mississippi, in January 2024 and a third campus in Warren County, Mississippi, in November 2025; (ii) Meta announced a campus in Rayville, Louisiana, in December 2024; (iii) Avaio Digital introduced a campus in Rankin County, Mississippi, in August 2025 and another campus in Little Rock, Arkansas, in January 2026; (iv) Google revealed a campus in West Memphis, Arkansas, in October 2025; and (v) Hut 8 reported a campus in West Feliciana Parish, Louisiana, in December 2025.
Entergy estimates that the economic and community benefits of these data center projects to be transformative, generating: approximately $47 billion in total new investment for communities in the region; thousands of high-tech jobs; millions of dollars in new tax revenues; improved local infrastructure; spin-off new business and employment opportunities; and a substantial influx of new philanthropic support for schools, non-profits, low-income families, workforce development and other state and community needs.
Furthermore, Entergy expects power bill benefits for Entergy customers that will be transformative and provide direct savings for millions of customers regardless of whether they live near the projects. Entergy believes customer savings will come in different ways for each state, including: new projects to strengthen the overall energy grid, reduced bill impacts from those grid infrastructure projects, residential customers paying a smaller share of the cost for new power generation facilities and lower bill fees for storm recovery work.
Entergy Mississippi announced rates that are significantly less than they otherwise would have been during the replacement construction of its power plants without the added contribution of the new AWS data center project, among others. The company is also increasing its investment in grid improvements to reduce power outages at no additional cost to existing customers thanks to the revenues from the project's power sales.
Entergy Mississippi president and CEO stated, "Thanks to the direction and engagement of Governor Reeves, the Mississippi Legislature and the Mississippi Public Service Commission, these large technology customers will help pay the cost for needed power grid maintenance and upgrades that would otherwise have been borne by our existing customers. During a rising cost environment, when we are having to replace two half-century old power plants with new units, securing such relief right now is perfect timing for our residential and small commercial customers."
Entergy Arkansas has announced up to $1.7 billion in savings for its customers resulting from the newly announced Google and Avaio data center projects. Google agreed to support the construction of a new 600-MW solar and 350-MW battery facility that will further diversify the Google's power portfolio and from which all Entergy Arkansas customers will receive power.
Entergy Arkansas president and CEO said, "Our customers in Arkansas are going to see bills lower than they otherwise would have been if it had not been for Governor Sarah Sanders' successful recruitment of Google and the Arkansas Public Service Commission's review and approval of the contract. And this benefit is on top of Google covering its full cost to serve."
Entergy Louisiana's data center agreements are expected to provide savings of approximately $800 million, with Meta's savings alone estimated to provide a 10 percent reduction in both storm recovery and grid resilience costs for Louisiana customers.
All three Entergy companies have filed plans with their state commissions confirming their favorable "resource adequacy," or the ability to serve existing customer power needs now and into the future, regardless of service to data center projects.
The large amounts of electricity these data center facilities require has raised questions nationally about how that will impact the price and reliability of power for existing electric customers. Today's concern about how to expand power generation and grid capacity to serve rapidly growing data center and industrial electric demands versus concerns a few years ago of continued offshoring of American industrial electric load and declining electric demands is like night and day.
Entergy stressed in its announcement that it has entered into customer service agreements with data center companies that require them to pay the direct power costs to serve these power-intensive facilities and provide added benefits for existing customers. Additionally, the state public service commissions for Arkansas, Louisiana and Mississippi have exercised oversight to ensure these and future data center projects do not negatively impact electric customers in their states who are sharing the same power grid.
In each state, Entergy has been able to serve these large projects while maintaining power reliability standards for all its customers. Entergy believes that Arkansas, Louisiana and Mississippi have one key advantage over other states experiencing bill spikes and reliability issues due to data centers - state oversight of a regulated electric utility.
Entergy Louisiana's president and CEO stated, "Some states have deregulated and not maintained authority over resource adequacy. In states where this authority has been relinquished without proper oversight, customers are experiencing higher electric bills and serious questions about the future availability of reliable power to serve their needs due to inadequate generation. I'm grateful that Governor Landry and the Louisiana Public Service Commission have preserved this customer advantage inherent in our rate-regulated model, and we will continue to follow their leadership and regulatory oversight on these projects."
Entergy's announcement yesterday noted that when a regulated utility builds new power generation, the state or state public service commission may impose conditions or other requirements to protect the interests of the utility's customers. In contrast, if power generation is built by a developer or a large customer that later seeks to connect to the grid, the state commission has no authority over that interconnection and no ability to regulate who ultimately bears the resulting costs or to manage reliability issues they may cause.
Entergy's announcement stated that its existing agreements with data center customers have been structured to benefit all customers, while also protecting existing customers from risks. Provisions in agreements include prepayment requirements, multi-year contract terms, credit and collateral requirements, and early termination penalties to protect existing customers. Entergy outlined guiding principles that inform its agreements with large data centers to ensure all power customers benefit from data center expansion, and Entergy expects to continue to insist upon these guiding principles that safeguard its customers in future data center agreements.
Entergy's chair and chief executive officer stated, "State leaders made it very clear to us that protecting and benefiting existing electric customers in our agreements should be our overriding goal, and we have carried that directive in our guiding principles."
Entergy's chair and chief executive officer stated, "Thanks to the engagement and careful regulatory oversight of the Arkansas, Louisiana and Mississippi Public Service Commissions, our region of the country is proving that households and high tech can coexist on the same power grid to the benefit of both. U.S. tech companies are getting the project speed and power they need to help America compete globally, and residential customers are getting new job opportunities, needed community investments, and an important new partner to help cover some of the costs required to maintain and strengthen the power grid."
Entergy noted that customer savings are calculated by comparing the expected data center revenues over the initial contract term to the incremental cost of serving the customer, including infrastructure investment in generation and transmission and an appropriate allocation of embedded costs when new investment is not required. The savings calculations reflect avoided rate actions due to the increased revenues together with contributions to mandatory riders, such as formula rate plans, storm and resilience riders. Adding these new customers to the system spreads costs across a larger customer base and contributes to the savings. The savings also reflect the approved ratemaking mechanisms and other regulatory requirements applicable to each Entergy utility.
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UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
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UPLAN-ACE
Day Ahead and Real Time Market Simulation
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UPLAN-G
The Gas Procurement and Competitive Analysis System
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