Entergy Arkansas drops lawsuit over newspaper’s publication of data center agreement details

Entergy Arkansas is dropping the lawsuit it filed over a newspaper publishing details about a West Memphis data center agreement that came from documents the utility said were released in error by state regulators.

The utility on Wednesday filed a notice of dismissal of its lawsuit against the Arkansas Democrat-Gazette, the Arkansas Times and central Arkansas resident Jessica Kivell. 

A federal judge earlier this month denied Entergy’s request for a temporary restraining order that would have prohibited the Arkansas Democrat-Gazette and Arkansas Times from disclosing details about Entergy’s agreements with Altitude Capital LLC, a Google subsidiary being used to set up the data center. 

The Democrat-Gazette published a story based on non-public and confidential documents that were released through a Freedom of Information Act request. Kivell, who made the FOIA request, provided the documents to the newspaper. Entergy said those documents were released in error and were trade secrets. 

The day after the ruling, Entergy said it would not pursue a preliminary injunction blocking publication. But the utility’s lawsuit had left open the possibility it could seek damages against the newspaper and Kivell.

The lawsuit and Entergy’s attempt to block further publication about the agreement alarmed press advocates who said the move undermined the First Amendment and went against decades of court rulings against prior restraint.

An Entergy spokesperson did not immediately respond to an email requesting comment late Wednesday afternoon. Democrat-Gazette Executive Editor Lee Wolverton declined to comment on the filing.

The Arkansas Times was named as a defendant in the case, though the outlet said it did not have the documents.

“We’re obviously so pleased Entergy called off their legal threats against the journalists and the good citizen who did nothing wrong and were simply trying to answer a question so many people have been asking,” Times Editor Austin Gelder said. “This was a heartening reminder that running to the courts won’t save anyone from the truth.”

The co-chairman of the Legislature’s Joint Energy Committee on Tuesday criticized Entergy over the lawsuit during a hearing on data centers. 

The legal fight occurred as several Arkansas communities have enacted measures blocking data centers or imposing new restrictions. The centers have sparked bipartisan pushback across the country over concerns about energy use and the lack of transparency surrounding such projects.