Entergy announces $5B in customer savings delivered by data center agreements; issues "Fair Share Plus" pledge
More than 2 million customers in
to see benefits over next two decades
"We proactively worked with our state leaders to recruit a new industry with attractive power agreements that protect and benefit our existing customers," said
"This announcement further supports the Trump administration's ratepayer protection pledge unveiled yesterday at the
Economic and energy benefits
Starting in 2024, the Entergy region saw the arrival of data center projects by five major technology companies, among other commercial agreements:
- AWS announced two campuses in
Madison County, Mississippi , inJanuary 2024 - AWS announced a third campus in
Warren County, Mississippi , inNovember 2025 - Meta unveiled a campus in
Rayville, Louisiana , inDecember 2024 - Avaio Digital introduced a campus in
Rankin County, Mississippi , inAugust 2025 - Avaio Digital announced a campus in
Little Rock, Arkansas , inJanuary 2026 - Google revealed a campus in
West Memphis, Arkansas , inOctober 2025 - Hut 8 reported a campus in
West Feliciana Parish, Louisiana , inDecember 2025
The economic and community benefits of these data center projects are expected to be transformative for the three states. The projects are expected to generate approximately
Further, the power bill benefits for Entergy customers announced today will be just as transformative and provide direct savings for millions of customers regardless of whether they live near the projects. The customer savings will come in different ways for each state, including new projects to strengthen the overall energy grid, reduced bill impacts from those grid infrastructure projects, residential customers paying a smaller share of the cost for new power generation facilities and lower bill fees for storm recovery work.
"Thanks to the direction and engagement of
Likewise,
"Our customers in
In addition to lower electric bills for customers, all three Entergy companies have filed plans with their state commissions confirming their favorable "resource adequacy," or the ability to serve existing customer power needs now and into the future, regardless of service to data center projects.
State oversight and direction
The large amounts of electricity these data center facilities require has raised questions nationally about how that will impact the price and reliability of power for existing electric customers.
Entergy has entered into thoughtful customer service agreements with data center companies that require them to pay the direct power costs to serve these power-intensive facilities and provide added benefits for existing customers. Additionally, the state public service commissions for
In each state, Entergy has been able to serve these large projects while maintaining power reliability standards for all its customers. The three states have one key advantage over other states experiencing bill spikes and reliability issues due to data centers – state oversight of a regulated electric utility.
"Some states have deregulated and not maintained authority over resource adequacy. In states where this authority has been relinquished without proper oversight, customers are experiencing higher electric bills and serious questions about the future availability of reliable power to serve their needs due to inadequate generation," said
When a regulated utility builds new power generation, the state or state public service commission may impose conditions or other requirements to protect the interests of the utility's customers. By contrast, if power generation is built by a developer or a large customer that later seeks to connect to the grid, the state commission has no authority over that interconnection and no ability to regulate who ultimately bears the resulting costs or to manage reliability issues they may cause.
Our guiding principles – Fair Share Plus
Entergy's existing agreements with data center customers have been structured to benefit all customers, while also protecting existing customers from risks. We have ensured provisions in our customer agreements like prepayment requirements, multi-year contract terms, credit and collateral requirements, and early termination penalties to protect our existing customers.
As part of today's announcement and as a continuation of these existing customer protections, Entergy has outlined these guiding principles that inform its agreements with large data centers to ensure all power customers benefit from data center expansion. The company expects to continue to insist upon these guiding principles that safeguard its customers in future data center agreements.
"State leaders made it very clear to us that protecting and benefiting existing electric customers in our agreements should be our overriding goal, and we have carried that directive in our guiding principles," said Marsh.
Entergy calls these guiding principles "Fair Share Plus" because they ensure that data centers pay their fair share for the power they use plus produce additional savings or benefits for existing customers on the power grid. Those principles are:
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Sufficiently long contract term for service agreement – ensure the recovery of adequate revenues from the data center customer to cover the cost of new infrastructure required to serve them and that assets remaining at the end of the term either will be cost effective for all customers or are paid for by the data center if not needed by other customers.
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Strong collateral requirements – ensure the data center customer's payment obligations to the utility are backed by sufficient credit, including liquid collateral such as cash deposits and letters of credit, coupled with guarantees from the ultimate company that owns the subsidiary data center customer; this provides a strong backstop to ensure the cost to serve the customer will actually be recovered from the customer itself.
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Guarantee adequate revenues – ensure that the rates charged to the data center customer are adequate to cover their incremental cost to serve during the contract term and the cost of the existing power grid upon which they rely and preserve the utility's financial health, particularly its access to capital on reasonable terms to meet the needs of all customers.
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Maintain grid reliability – ensure that reliability to the power grid is not put at risk for existing customers by making sure the timing of the addition of any new large customer's load aligns with the timing of new generation becoming available.
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Maintain p
ower quality – ensure that data centers are obligated to install necessary equipment to protect the grid from power quality issues that can occur due to the size of their electric load.
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Clean power support – data centers have a track record of supporting clean energy, including nuclear power; our electric service contracts should ensure this commitment is met.
- Strong Commission oversight – ensure that the state public service commission maintains oversight on the prudence of costs incurred to serve the data centers so that all customers know that monies are being spent wisely and that the utility is administering its electric service contract in accordance with the public interest.
"Thanks to the engagement and careful regulatory oversight of the
The customer savings are calculated by comparing the expected data center revenues over the initial contract term to the incremental cost of serving the customer, including infrastructure investment in generation and transmission and an appropriate allocation of embedded costs when new investment is not required. The savings calculations reflect avoided rate actions due to the increased revenues together with contributions to mandatory riders, such as formula rate plans, storm and resilience riders. Adding these new customers to the system spreads costs across a larger customer base and contributes to the savings. The savings also reflect the approved ratemaking mechanisms and other regulatory requirements applicable to each Entergy utility.
Learn how data centers are bringing big benefits to Entergy's communities by visiting Entergy.com/DataCenters.
About Entergy
Entergy (NYSE: ETR) generates, transmits and distributes electricity to power life for more than 3 million customers through our operating companies in
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