Entergy Arkansas Unveils $4.2 B ‘Next Generation Arkansas’ Plan to Expand Capacity, Cut Outages, and Support Data‑Center Growth

ETR
December 19, 2025

Entergy Arkansas announced a $4.2 billion investment program, dubbed “Next Generation Arkansas,” that will add 2,600 MW of new, fuel‑efficient generation and repower 1,600 MW of existing plants. The program is designed to reduce outages by at least 30 % and support a projected 35 % rise in power demand over the next five years, with most projects slated for completion by 2030.

Key projects include a 600 MW solar farm and 350 MW battery storage at the Arkansas Cypress facility (2028), a 450 MW natural‑gas plant at Ironwood Power Station (2028), a 750 MW natural‑gas plant at Jefferson Power Station (2029), and a license renewal for Arkansas Nuclear One that will keep the 1,800 MW plant in service. The plan also calls for retrofitting coal‑fired units to burn natural gas, further reducing emissions.

The investment is expected to keep residential rates 22 % below the national average, but the company estimates that average residential bills could rise by more than $20 per month by year five as the new infrastructure is financed. Entergy Arkansas CEO Laura Landreaux said the plan “prepares the state for unprecedented growth, strengthens reliability, and keeps rates affordable while attracting high‑growth customers such as data‑center operators.”

A key driver of the plan’s feasibility is a partnership with Google, which is investing $4 billion in a new data‑center facility in Arkansas. The partnership is expected to generate over $1.1 billion in net benefits for the utility and to help keep rates low through economies of scale.

The program is pending approval from the Arkansas Public Service Commission. If approved, the Strategic Investment Recovery (SIR) rider will allow Entergy to recover the capital costs through regulated rate increases, a mechanism that has been used for similar large‑scale projects in the state.

Entergy Arkansas’s announcement signals a strategic shift toward a cleaner, more reliable grid that can support the state’s growing data‑center and industrial sectors. The plan positions the utility as the “electricity provider of choice” in Arkansas, reinforcing its competitive advantage and supporting long‑term economic development.

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