US utility Entergy Arkansas has announced that it will power Google's planned data center in West Memphis, Arkansas.

The deal was part of a larger announcement by Google, in which the search giant committed to investing $4 billion in the state through 2027. According to the company, it has now broken ground at the data center site.

As part of the deal with Entergy, Google will cover the full energy costs associated with powering the data center. Google has also committed to pay rates to support the construction of a new 600MW solar project, tied to a 350MW Battery Energy Storage System, located in Jefferson County, Arkansas.

The data center is expected to contribute more than $1.1bn in net benefits over the life of the contract and help reduce electricity rates for all Entergy Arkansas customers. The data center will be powered by Entergy Arkansas' existing power generation and distribution assets.

"We're investing in a next-generation power portfolio and power grid to deliver reliable energy that supports jobs, strengthens communities, and builds a brighter future for the next generation of Arkansans," said Entergy Arkansas president and CEO Laura Landreaux.

Additionally, Google has committed $25 million to an Energy Impact Fund to scale and accelerate energy affordability initiatives in Crittenden County and the surrounding area. The funds are expected to support home weatherization, innovative energy efficiency technology, and energy workforce development.

"We're proud to be partnering with Google to bring unprecedented economic opportunity to Arkansas. Google's $4bn investment in its new facility, its $25m Energy Impact Fund, and its investment in the future of our students demonstrates what lasting community impacts aimed a project of this magnitude can have," said Landreaux. "Entergy Arkansas is committed to powering growth and building a stronger, more vibrant future for the next generation and has found a partner in Google who shares this same vision."

Google confirmed that it was the developer behind the planned West Memphis data center in a statement released last month. Dubbed Project Pyramid, the campus is expected to span five buildings across a 1,178-acre property on the south side of Bollinger Road in West Memphis, Crittenden County.

The company filing for the campus was Groot LLC, which was confirmed to be linked to Google, according to reports from the Memphis Business Journal.

Arkansas does not have a large data center market. DataCenterMap lists only five facilities in the state - four around Little Rock and one around West Memphis - the upcoming Google facility. TierPoint and Mainstream Technologies operate facilities in the state. Earlier this year, an unknown developer applied to develop a $1bn data center in Little Rock.

Entergy Arkansas is a subsidiary of Entergy Corporation, which serves more than three million customers across several operating companies in Arkansas, Louisiana, Mississippi, and Texas.