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Arkansas residents say a $6.6 billion data center near a hospital moved ahead without answers

A technician observing cooling units in a modern server room with rows of equipment.
A technician observing cooling units in a modern server room with rows of equipment.

"I just came away from it saying I need to know more about what's going on."

In Clarksville, Arkansas, a huge data center taking shape next to a hospital has gone from background news to a visible reality for residents who say the project's scope truly sank in only after a wooded hillside they could once see was cleared away.

For locals who wanted earlier notice and firmer details, the rapid buildout changed what had been a relatively low-profile development process into a growing source of conflict, according to the Arkansas Advocate.

What's happening?

Serverfarm, a California-based company, is building a $6.6 billion data center campus near Johnson Regional Medical Center in Clarksville, a town of fewer than 10,000 people.

Clarksville resident Karen Fawley said she had only vaguely heard about the proposal before seeing crews remove the hillside from her mother's hospital room.

The Arkansas Advocate reported that groundwork for the project was laid in 2022 and that it moved through zoning and city approvals with limited public pushback. 

Concern intensified last week, however, after the Arkansas Advocate reported that local officials delayed action on resolutions tied to up to $55 billion in industrial development revenue bonds for the project.

Project concerns drew roughly 100 people to a town hall organized by community members at the University of the Ozarks, and organizer Debra Hobbs said more than 80 questions had been submitted in advance.

Many of those questions focused on jobs, taxes, utility costs, and environmental impacts.

Serverfarm spokesperson Kurt Widmann said the company expects the development to bring "hundreds of permanent jobs and millions in tax revenue" and said it intends to meet environmental requirements.

Why does it matter?

Supporters of the project, including Republican state Rep. Aaron Pilkington and city council member Eddie King, have argued that Clarksville needs dependable jobs and a stronger tax base after major manufacturing losses in the region.

A massive industrial-style facility next to a hospital has raised questions about land use, noise, construction disruptions, electricity demand, and whether the community is being asked to give up too much before any clear benefits are guaranteed.

Data centers are closely tied to the rapid growth of artificial intelligence, which depends on enormous computing facilities and the energy infrastructure needed to power them.

AI can help utilities better forecast demand, reduce waste, and improve clean energy systems. 

On the other hand, data centers consume huge amounts of electricity and water, strain local infrastructure, drive up energy costs, and spark broad-ranging concerns if expansion outpaces oversight.

Communities across the country are increasingly facing these same tradeoffs as data centers spread beyond major metropolitan areas and into smaller towns.

What's being done?

For now, much of the momentum is coming from residents calling for more transparency before additional decisions are made.

Hobbs said the project is pushing people who "feel powerless" to get involved, while Clarksville City Council member Christel Thompson said local leaders had not done a good job of "getting out in front of this."

Serverfarm claims it is still providing information to city leaders, but a broader community benefits package was recently withdrawn from a council agenda.

Thompson said she has seen other data centers support education and STEM opportunities through property tax revenue, suggesting the project could bring benefits if those commitments are clearly defined and followed through on.

"I just came away from it saying I need to know more about what's going on," Fawley said.

"We understand a project of this size generates questions, and we welcome these conversations," Widmann added.

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