Air Permit Required For Proposed Data Center State Records Detail Generator Plans As Site Clearing Continues
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by Megan Wylie
Records obtained through a Freedom of Information Act (FOIA) request to the Arkansas Department of Energy and Environment (ADEE) show the proposed Serverfarm data center in Clarksville will require an air permit for its planned backup generators, while stormwater permits are already active and site clearing is underway on the 135-acre tract.
The documents provide a clearer picture of how the facility’s emergency power systems are designed and outline ongoing regulatory discussions as Clarksville Connected Utilities (CCU) continues negotiating electric service and transmission arrangements tied to the project.
Generator Plans Require Air Permit
In Jan. 12 emails to ADEE’s air quality division, consultant Mark Brunner described a four-building campus that would rely on 18 emergency generators totaling approximately 55.2 megawatts (MW) of generating capacity.
Building 1 would house the bulk of those units, 14 generators rated at 3.3 MW each and one rated at 2.25 MW, configured in what is known as an “N+1” design. In practical terms, that means one additional generator beyond what is required, providing redundancy in case of equipment failure. That building would support roughly 12 MW of computer equipment, along with a separate generator dedicated to office and support areas.
Buildings 2, 3 and 4 would not include generators backing the data halls. Each would instead have one 2.25 MW generator serving office and support systems such as lighting, climate control and fire suppression.
The correspondence states the engines would have an 87.5-liter displacement. Because that exceeds a 30-liter exemption threshold under state air regulations, the project does not qualify for a simplified exemption and must obtain an air permit. The consultant indicated the company intends to apply for a minor source air permit.
Records released through the FOIA request did not include a completed application or a final agency determination.
Fuel Cell Facility Proposed Next Door
A separate Jan. 9 memorandum to ADEE outlines a proposed fuel cell power facility adjacent to the data center. The project would involve American Electric Power (AEP) and utilize solid oxide fuel cells manufactured by Bloom Energy. Unlike traditional generators, fuel cells produce electricity from natural gas through a chemical process rather than combustion.
According to the memo, the land would be purchased by Serverfarm, leased to CCU and then subleased to AEP in what the document describes as an arm’s length transaction. AEP would construct and operate the facility, potentially subcontracting operations to a third party, such as Bloom.
Electricity generated at the fuel cell site would be sold to CCU under a power purchase agreement, and the data center would in turn purchase electricity from CCU through an electric service agreement.
Project representatives asked the state to treat the data center and fuel cell facility as separate sources for air permitting purposes, citing different industry classifications, separate management and lack of common control. The records provided did not include ADEE’s final determination on that request.
Stormwater Permit Covers 135 Acres
State records also show the developer has filed a Stormwater Pollution Prevention Plan (SWPPP) under Arkansas’ general permit for large construction sites.
Prepared by Kimley-Horn and Associates on behalf of SF ARK1, LLC, the plan covers 135.1 acres, with approximately 129 acres designated for disturbance through clearing and grubbing.
Stormwater from the site drains into an unnamed tributary that eventually flows into Greenbrier Creek, Spadra Creek and the Arkansas River. Greenbrier Creek is listed on the state’s impaired waters list for dissolved oxygen concerns. The SWPPP states the project itself is not identified as contributing to that impairment but acknowledges the designation.
The erosion control plan calls for more than 4,600 linear feet of silt fencing, an eight-foot-deep temporary sedimentation basin capable of holding 11.15 acre-feet of runoff, and a 100-foot tree buffer along East Poplar Street. The current phase of work is described as tree clearing, grubbing and stabilization. Vertical building construction is not addressed in the plan at this stage.
Load Letters Reference Phased Demand
Redacted load letters released by CCU include file names referencing 318 MW, 307 MW and a 450-MW “bridge” phase. The megawatt figures themselves are redacted within the documents and were not discussed in open session.
In previous public statements, CCU General Manager Roy Young has said the utility will provide only 18 MW from its existing system, with any additional power secured through new generation or transmission arrangements at the developer’s expense.
Such arrangements could involve transmission upgrades, power purchase agreements and the proposed fuel cell facility, which would generate electricity delivered to CCU under separate contracts. Young has stated negotiations remain ongoing, and no final electric service agreement has been publicly approved.
Regulatory Review Continues
The ADEE correspondence confirms that generator configuration and permitting requirements have been discussed with regulators. However, based on the records released to-date, no final air permit has been issued. No completed application or final source classification determination was included in the documents provided. The Graphic has submitted an additional FOIA request for those records.
In response to separate FOIA requests filed by The Graphic in December, Mayor David Rieder stated the city of Clarksville had no records relating to environmental impact studies, cost-benefit analyses, energy or water usage projections, validated job studies, Arkansas Economic Development Commission involvement or a construction timeline. Rieder also said more detailed information will become available once a large-scale development plan is submitted to the Planning and Zoning Commission.
At the utility level, CCU has approved a transmission service agreement term sheet and infrastructure relocations associated with the project, as well as memorandums of understanding related to potential generation sources.
State records indicate environmental permitting and site preparation are underway. Future milestones would include submission and review of an air permit application and issuance of any required local building permits before vertical construction begins.
Rieder said discussions are expected to continue this week on the state level.
All meetings of the CCU Commission, Clarksville City Council and Planning and Zoning Commission are open to the public. Agendas are published in The Graphic prior to meetings and are available on city and utility websites. Coverage of those meetings appears monthly in The Graphic.
Read this story and others in the March 4 issue of The Graphic, available online and at businesses throughout Franklin and Johnson counties. Subscribe or donate here to support more hometown journalism.
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