Data center eyes Clark County, set to buy mega site in $11M deal

DATA CENTER ON THE HORIZON? — The first slide of a presentation hints of a proposed data center that would be located about 5 miles south of Arkadelphia at the Southwest Arkansas Mega Site in Gum Springs. | arkadelphian.com photo by Joel Phelps

By JOEL PHELPS | arkadelphian.com

A data center could very well be coming to Clark County, Arkansas, following a vote Thursday, April 16, to sell the entire Southwest Arkansas Mega Site to an unnamed buyer.

In a 90-minute special-called meeting of the Economic Development Corp. of Clark County, board members gave their unanimous approval to sell the 991-acre site in Gum Springs — initially to DC Devco LLC — in an estimated $11.4 million deal.

Called “Project Pulse” for now, the end buyer will make itself known prior to closing on the property. The purpose for buying the site is to develop a data center campus that would create 150 primary jobs and make a minimum investment of $1 billion.

The buyer identified the Southwest Arkansas Mega Site as a viable property, which is already equipped with the water, power and gas utilities necessary to get started. A trio of Atlanta-area businessmen representing the buyer fielded numerous questions from board members, from expected power usage to what types of jobs the company plans to offer.

It was said at the meeting that a data center would not overburden the local power grid, nor would it increase residents’ power bills. The center would produce new power using on-site natural gas transmission lines and grid power in coordination with utility companies. Working from a slideshow, the representatives quoted excerpts from Entergy’s website that says the power company ensures the grid can supply additional demand while maintaining reliable service to existing customers. The slides also claimed that power bills would not increase because, according to Entergy, new industrial customers pick up a larger share of grid maintenance improvement costs.

Ten years ago the site was expected to be home to the Chinese-owned Sun Paper, a project that ultimately fell through. In comparison with the paper mill, the representatives said, a data center would have far less of an environmental footprint, with no air pollution and “negligible” noise pollution.

If everything goes as planned for the data center and county officials, the campus could be operating by 2032, said Shelley Short, CEO of the Arkadelphia Regional Economic Development Alliance. “I’m incredibly excited, but we’ll have to be patient,” Short said.

Asked what types of jobs a data center would create, it was said that it would mostly be technical careers, but there would be engineers and tradesmen needed to keep the 24/7 facility operational.

Clark County Judge Troy Tucker asked for clarity on what data centers do. They’re essentially large computer warehouses — the backbone of the Internet, where anything data-related is generated. It was noted that the servers do get “very hot” and therefore water is needed for cooling. This particular buyer, it was said, uses a closed-loop cooling system that uses about 50,000 gallons of water per day — about 8% of the estimated 600,000-gallon capacity, and would not affect the Arkadelphia water system, the representatives said. Any water used also re-enters the water/sewer system, and no chemicals are added during the cooling process. Arkadelphia City Manager Gary Brinkley welcomed the project, saying at the meeting that the city is “all in”.

It was said that the end buyer would be responsible for costs associated with power upgrades for the data center.

The company interested in the land is likely to publicly identify itself in its own announcement prior to closing on the property.

Asked whether the company is a good community partner, the representatives said it invested $175 million to upgrade infrastructure in one community where they’re operating in Wisconsin. It was also said that the campus could generate an estimated $60-$70 million in annual tax revenue. 

The company interested in the property is not seeking incentive money from the EDCCC.

Short said a tax abatement would likely be provided on the property as customary part of economic development.

Board member Brian Kirksey, who sits on the South Central Arkansas Electric Cooperative board of directors, said he welcomed the idea of a data center. Opponents, he said, are likely to invoke NIMBY (Not In My Back Yard) arguments, but “if we say ‘no’ now, we nix our future chances. Technology is where it is. This is an opportunity for our community to excel.”

Kirksey motioned to authorize the sale agreement. Kevin Jester seconded the motion, which was approved unanimously in a voice vote.