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Data center regulations in Arkansas

Graded Light and tightening. 11 laws, orders, rulings and local actions, each with its source, reviewed 23 October 2026.

Reviewed 23 October 2026 · Part of the Data Center Rulebook

State incentives expanded in 2025; county moratoria spreading in 2026

Light↑ TighteningGrid: MISOGrid: SPP11 items
8in force
1pending
3local pauses
intact, with conditionstax break
2.0combined index (5 most)
7.8cper kWh, industrial
23 October 2026reviewed
Regulation1.6 / 5
  1. Grid connection1

    No connection, own-power or reliability rule in force; large loads are handled through case-by-case utility contracts.

  2. Power rates2

    Only the Entergy-Google special contract (Docket 25-055-P, approved by early 2026) sets minimum bills; no general large-load tariff exists.

  3. Siting and land use2

    Independence (5 years), Madison (3 years), Union and Carroll (1 year) counties paused in 2026, all outside the Little Rock and West Memphis markets.

  4. Tax treatment2

    Act 548, effective 1 Oct 2025, widened the sales tax exemption to $100 million of investment with a $1 million payroll test; it stays intact.

  5. Permits and water1

    No water, air or disclosure requirement in force at state level; Fayetteville's Aug 2026 rules are the only local documentation demand.

Scored on rules in force, 1 to 5. 5 is the most regulated. Pending rules set the arrow.

State policy favours data centers: Act 548 of 2025 cut the investment needed for the sales tax exemption (which covers electricity) to $100 million, and the Generating Arkansas Jobs Act lets utilities charge for new generation while it is built. The Public Service Commission has approved a special rate contract for Google's West Memphis campus, and there is no general large-load tariff or state rule on self-supplied power that could be confirmed. Resistance is local. Five counties, including Independence (five years) and Madison (three years), have passed moratoria, Fayetteville and Little Rock have adopted regulations, and in Pulaski County moratoria narrowly failed and a regulatory ordinance passed 11-4 in September 2026 was vetoed by the county judge. The governor has not moved to restrict projects.

Outlook for the next year

Pulaski County sponsors plan an override of County Judge Barry Hyde's 25 September 2026 veto of the data center ordinance, which needs nine of 15 votes; AVAIO Digital's campus near Wrightsville and a Google project at the Port of Little Rock are the projects at stake. The 2027 regular session opens in January, and a non-binding interim resolution encouraging a statewide moratorium is before the Insurance and Commerce committees. The November 2026 governor's race features a Democratic nominee who sponsored that resolution and backs a pause. Lawmakers questioned Entergy Arkansas on 15 September 2026 about its data center contracts and the Generating Arkansas Jobs Act rider that began appearing on bills in summer 2026, and Entergy has petitioned for rehearing of parts of the Google contract order.

Does Arkansas have a data center moratorium in force?

No statewide moratorium, but 3 local pauses are in force as of 23 October 2026, in Independence County, Madison County, Union County, Carroll County, Russellville. Proposals and expired pauses are not counted.

Is Arkansas tightening or loosening its rules on data centers?

Tightening. Arkansas is graded Light, which means incentives in place and few new obligations. State incentives expanded in 2025; county moratoria spreading in 2026. The outlook above says what is pending.

Which grid operator covers Arkansas?

Arkansas sits in MISO and SPP. The grid operator decides how a new large load is studied, what it must bring or pay, and whether it can be curtailed first; the state decides siting, permits, tariffs and incentives.

Has Arkansas cut its data center tax incentive?

No. Arkansas's data center incentives were not pulled back in 2025 or 2026 as of 23 October 2026.

How regulated are data centers in Arkansas?

On Genloop's five-line rubric (1 least regulated, 5 most) Arkansas scores grid connection 1, power rates 2, siting and land use 2, tax treatment 2, permits and water 1, a mean of 1.6. The most regulated line is tax treatment: Act 548, effective 1 Oct 2025, widened the sales tax exemption to $100 million of investment with a $1 million payroll test; it stays intact.

Every item, newest first

11 items: each is a law, order, tariff, ruling, utility action or local decision that changes what a data center must do, pay or disclose, or where it may be built. Failed and pending measures are marked. Each links to its source.

  1. State lawSep 2026costs and tariffsIn force

    Joint Energy Committee questions Entergy on data center costs and GAJA rider

    On 15 September 2026 the Joint Energy Committee questioned Entergy Arkansas about its data center contracts and a rider under the Generating Arkansas Jobs Act that began charging just over half a cent per kWh in summer 2026 for three generation projects still under construction, including the $1.6 billion Cypress Solar project. Entergy said its Fair Share Plus pledge keeps data centers paying their way and that Google's $2.1 billion over 20 years is not tied to Cypress. Entergy also dropped a lawsuit on 16 September against a newspaper that published West Memphis agreement details.

    Source: arkansasadvocate.com
  2. LocalPulaski CountySep 2026moratoriaVetoed

    Pulaski County: moratoria fail, regulatory ordinance vetoed

    Repeated one-year moratorium attempts since May 2026 fell short of the votes needed, including a 26 May measure first recorded as passed and then found to have failed. In September 2026 the quorum court instead approved 11-4 an ordinance written by Democratic county judge nominee Wendell Griffen requiring electrical load analyses, water and wastewater plans, land-use studies and a decommissioning plan, and proof a project will not materially impair surrounding utilities. County Judge Barry Hyde vetoed it on 25 September 2026 citing legal risk; sponsors plan an override vote needing nine of 15 votes. AVAIO Digital's campus near Wrightsville and a Google project at the Port of Little Rock are the pending projects.

    Source: arkansasadvocate.com
  3. LocalPulaski CountySep 2026siting and zoningVetoed

    County judge vetoes Pulaski County data center ordinance

    On 25 September 2026 County Judge Barry Hyde vetoed the data center ordinance the quorum court passed 11-4 earlier that month, which would have required load analyses, water and wastewater plans, land-use studies and decommissioning plans without capping power or water use. Sponsor Julie Blackwood plans an override, which needs nine of 15 votes; nominee Wendell Griffen, who beat Hyde in the primary, backs it.

    Source: arkansasadvocate.com
  4. LocalMadison CountyAug 2026moratoriaIn force

    Madison County three-year moratorium

    The quorum court voted unanimously in mid-August 2026 for a three-year data center moratorium, making it the fifth Arkansas county with one. The county has no known projects.

    Source: lailluminator.com
  5. LocalFayettevilleAug 2026siting and zoningIn force

    Fayetteville data center restrictions

    The city council tightened rules passed earlier in summer 2026: developers must supply more documentation, meet wastewater pretreatment rules, use battery storage rather than generators as primary backup, and get a permit amendment for any expansion.

    Source: lailluminator.com
  6. LocalIndependence CountyAug 2026moratoriaIn force

    Independence County five-year moratorium

    The quorum court unanimously passed a five-year data center moratorium in August 2026, the longest in the state.

    Source: lailluminator.com
  7. State lawAug 2026moratoriaProposed

    Interim resolution encouraging a statewide moratorium

    On 21 August 2026 a state senator, who is the Democratic nominee for governor, proposed a non-binding interim resolution encouraging a moratorium on data center development while the state writes standards. The Legislative Council referred it to the Insurance and Commerce committees.

    Source: lailluminator.com
  8. LocalUnion County, Carroll County, RussellvilleJun 2026moratoriaIn force

    One-year county pauses and a six-month city pause

    Union and Carroll counties each passed a one-year pause in June 2026, and Russellville passed a six-month pause on approving data centers in July 2026. Little Rock adopted data center regulations in June 2026 instead of a moratorium.

    Source: lailluminator.com
  9. RegulatorEntergy ArkansasDec 2025costs and tariffsIn force

    PSC approves Entergy special rate contract for Google (Docket 25-055-P)

    Between mid-2025 and early 2026 the Public Service Commission approved a special rate contract with minimum-bill features for Entergy Arkansas to serve Google's $4 billion West Memphis data center; Google pays hundreds of millions up front and about $2.1 billion over 20 years. Entergy has petitioned for rehearing of parts of the order it says could force renegotiation. Arkansas handles large loads through case-by-case contracts of this kind; Entergy also began billing a Generating Arkansas Jobs Act rider of just over half a cent per kWh in summer 2026 for three unfinished plants, which lawmakers questioned on 15 September 2026.

    Source: arkansasadvocate.com
  10. State lawApr 2025incentivesIn force

    Act 548 of 2025 (HB 1444): wider data center sales tax exemption

    Effective 1 October 2025. Cuts the qualifying investment from $500 million to $100 million, adds a category for multi-site campuses investing $2 billion, keeps electricity exempt, lets indirect pay count toward the $1 million payroll test, and excludes crypto mining. The exemption was created by Act 819 of 2023.

    Source: kutakrock.com
  11. State lawMar 2025costs and tariffsIn force

    Generating Arkansas Jobs Act of 2025 (Act 373, SB 307)

    Became law on 20 March 2025. Lets utilities bill customers for new power plants and other strategic investments while they are being built instead of after they enter service; Entergy Arkansas is using it for generation tied to data center growth.

    Source: arkleg.state.ar.us

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