- AVAIO Digital Partners will invest $6B in phase one of its “Leo” hyperscale data center and power campus near Little Rock, with total build-out projected above $21B.
- The 760-acre Pulaski County site has 150 MW contracted from Entergy Arkansas with plans to scale to 1 GW, targeting construction in early 2026 and operations in mid-2027.
- The project expects 500+ permanent jobs over five years plus thousands of construction jobs, supported by Arkansas incentives and streamlined permitting.
- Key risks include heavy power and water demands, potential grid strain and utility-rate impacts under Act 373, and environmental or local political pushback.
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The AVAIO Digital Leo project represents a watershed development for Arkansas and the broader U.S. hyperscale data center market. At $6 billion for Phase 1 with a potential $21 billion full build-out, this will be the largest private infrastructure investment in state history and one of the most ambitious in the region. Selecting a 760-acre parcel near Wrightsville (Pulaski County), the project benefits from significant existing grid and gas infrastructure, strong fiber connectivity to major data center hubs (Dallas, Atlanta, Memphis), and what state leadership describes as streamlined permitting and generous economic incentives.
Energy demand is central: the campus has secured 150 MW from Entergy Arkansas initially, scaling to 1 GW as it grows. This will exert significant demand on grid infrastructure and utilities. Entergy’s contract and site choice (with natural gas on-site) provide some buffer, but meeting 1 GW reliably (with sustainability requirements) remains operationally and regulatory complex.
From a labor and economic development perspective, 500 permanent operations jobs are modest relative to the scale of capital being deployed, but construction-phase employment will be much larger. For the state, revenues from construction, property, and ancillary services are likely where most short term gains lie. Long-term alignment with workforce development will be critical.
Environment and community impact are likely to merit attention both from external ESG stakeholders and local interest groups. Water usage (for cooling, etc.), power rate impacts under new Arkansas legislation (notably Act 373), and the scale relative to job creation are potential flashpoints. Utility rate risk is particularly salient if Entergy and local utility commissions pass costs through or reallocate existing load.
Strategic implications: Arkansas gains serious footing in the AI infrastructure boom — potentially attracting further hyperscale investment. For AVAIO, establishing this Leo campus adds to its national and European portfolio (over 1.2 GW across multiple campuses), positioning it as a key player. For investors and utilities, ensuring grid upgrades, supply chain readiness, sustainable design implementation, and environmental permitting will be essential for successful execution.
Open questions remain:
Supporting Notes
- Initial investment: Phase 1 is $6 billion; full build-out exceeds $21 billion.
- Site: 760 acres in Pulaski County, Arkansas, near Wrightsville, off 145th Street south of Little Rock.
- Power: contracted with Entergy Arkansas for 150 MW; project expects demand to reach up to 1 GW.
- Timeline: Construction starts in Q1 2026; energization of Phase 1 by June 2027.
- Jobs: more than 500 permanent operations jobs over five years; thousands of construction jobs during build-out.
- Site advantages: on-site natural gas infrastructure, low-latency fiber connectivity to Dallas, Atlanta, Memphis; large footprint enabling future expansion.
- Sustainability: water-efficient cooling, rainwater recapture, rooftop solar, cooling-system economization, landscaped buffers from neighboring parcels.
- Regulatory environment: Arkansas recently passed legislation (e.g. Act 373) reducing regulatory timelines for energy projects and increasing incentives for data center investment.
- Risk: concerns raised by critics about whether electricity and water usage can be justified relative to job creation; potential for higher utility rates under new cost recovery rules.