Entergy Arkansas has announced that it will power Google’s planned $4 billion technology investment in Arkansas. The deal will focus on cloud and artificial intelligence (AI) infrastructure, including the development of a new data center in West Memphis, Arkansas. Across the Mississippi in Memphis, Tennessee, Elon Musk’s AI is building another huge AI data center campus. The Memphis metropolitan area is becoming a major tech hub.

Google will cover the energy costs associated with powering the facility, which will contribute over $1.1 billion in net benefits over the life of the contract and help to reduce electricity rates for Entergy Arkansas customers. Electric grids operate on economies of scale, so when large customers establish service to power a major new project, they help spread the utility’s fixed costs to operate and maintain the grid over a wider customer base, driving down electricity prices for everyone.

The facility will be powered by Entergy Arkansas’s existing generation power portfolio and transmission grid which will be bolstered by a new 600 MW solar project, backed by a 350 MW battery storage system to be located in Jefferson County, Arkansas. Google will pay rates that cover the cost of this energy.

Google also announced plans for a $25 million Energy Impact Fund to scale and accelerate energy affordability initiatives in Crittenden County and the surrounding area as the company shows its commitment to being a good community partner. The funds will go towards home weatherization, innovative energy efficiency technology and energy workforce development.

“Large industrial and technology companies are increasingly looking at our state because we offer reliable power at affordable rates, and we plan to keep it that way,” said Entergy Arkansas President and CEO Laura Landreaux. “Large customers, such as Google, help support investments in infrastructure additions that not only help power their facilities but also result in improved grid reliability that benefit all customers.”