Fayetteville is considering new regulations for data centers to protect utility customers, water supplies, and local control. Five data center projects have been announced statewide, including AVAIO's $6 billion Pulaski County campus, Google projects in West Memphis and Little Rock, Serverfarm in Clarksville, and an unnamed Conway proposal. Data centers require massive power and water but often produce fewer permanent jobs than manufacturing. Some worry they could increase electric rates; economist Jeremy Horpedahl estimates a 1% to 1.5% total rise. Northwest Arkansas is not yet a hub for such projects. Fayetteville's proposed rules include water and electricity impact reports, cooling restrictions, generator guidelines, setbacks, and buffers. Mayor Molly Rawn stated the city is updating code to keep up with technology. Council Member Mike Wiederkehr said the city is "not anti-technology" but wants fair cost sharing. Arkansas' 2023 Data Centers Act complicates local action, focusing heavily on cryptocurrency mining and leaving cities uncertain about legal boundaries.
Source: https://www.axios.com/local/nw-arkansas/2026/06/11/fayetteville-data-center-regulations-proposal
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