$10B data center deal comes as area emerges as tech hub
For almost a year, West Memphis Mayor Marco McClendon has hinted on News Channel Three at 3 that he would be unveiling the biggest investment in the history of West Memphis, Arkansas, very soon.
'We've been on a winning streak for so long, and so many great things are coming in the next couple of weeks. You're going to hear about the biggest investment in the City of West Memphis,' said Mayor McClendon.
The biggest investment is believed to be a Fortune 100 company that's planning a $10 billion data center.
It would be located on 920 acres of land on Bollinger Road near the Coca-Cola distribution warehouse. The data center is expected to create 300 new jobs.
A city spokesperson, citing non-disclosure agreements, would only tell Your News Leader that they're working with a company called Groot LLC.
Fortune 100 company working to build data center in West Memphis, city says
However, the Memphis Business Journal is reporting that Groot is a local entity operating for Google, one of the world's largest companies.
Last week, the West Memphis City Council voted to approve several agreements with Groot, including payment in lieu of taxes, along with an infrastructure and incentives package. But complete details haven't been released.
The possible deal comes as the Memphis area emerges as a tech hub.
'What we love about that Memphis is suddenly now on that stage for technology companies, data centers that are considering major investments here,' said Ted Townsend, Greater Memphis Chamber CEO and President.
The Memphis area now has 11 data centers, including the Elon Musk Xai supercomputer, and a new data center is being planned on Getwell Road, the old Fred's headquarters.
'That's exciting to us, where we adapt and reuse these facilities. And what once was an Electrolux facility is now the world's largest supercomputer, and once was Fred's headquarters is now going to be a data center,' said Townsend.
Pearson calls out Health Department, Mayor Harris over xAI
But as more data centers come to the Mid-South, there are public concerns about transparency and the impact on the environment as the Memphis area becomes the heartbeat of the Digital Delta.
'We have to support economic development, but we certainly can't do it at the cost of a community that has historically been mistreated and not given the whole truth,' said TN Senator Raumesh Akbari, (D) Memphis. 'So, that's what I'm looking for, what turbines are actually being used, and what is the environmental impact? What's the air quality impact? What's the water impact?'
The City of West Memphis has also agreed to a 65% real and personal property tax abatement for 30 years with Groot LLC.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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