Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 807

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 807
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 be granted subject to terms that are unacceptable, or Entergy or its subsidiaries otherwise may be unable to achieve anticipated regulatory treatment of any such transaction or acquired business or assets; 

•shifting governmental policies may impact government support for capital projects, including tax incentives or tax credits, grants, guarantees, or other subsidies; and

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Table of ContentsPart I Item 1A, 1B, and 1CEntergy Corporation, Utility operating companies, and System Energy

•Entergy or its subsidiaries otherwise may be unable to achieve the full strategic and financial benefits that they anticipate from the transaction, or such benefits may be delayed or may not occur at all.

Entergy and its subsidiaries may not be successful in managing these or any other significant risks that they may encounter in acquiring or divesting a business, or engaging in other strategic transactions, which could have a material effect on their business, financial condition, or results of operations.

The success of certain Utility operating companies’ investments in new generation and transmission assets to support large-scale data centers depends on a limited number of customers, the continued demand for electricity to power data centers, and the successful completion of the associated generation and transmission projects.  Any reduction in the demand for electricity to power data centers or delays or unexpected costs associated with such projects may harm the growth prospects, future operating results, and financial condition of Entergy and these Utility operating companies.

Subject to pending regulatory approvals, certain Utility operating companies are planning to make significant infrastructure investments in new solar projects, natural gas power plants, and other transmission and generation assets to power new large-scale data centers.  These infrastructure investments are being made primarily in connection with electric service agreements with a small number of customer representing significant new load to provide power for new data centers being constructed to support artificial intelligence and other technology capabilities.  The Utility operating companies continue to explore similar opportunities and may engage in additional similar transactions in the future.

This concentration of business with a small number of customers in an industry based on emerging technologies, including artificial intelligence and machine learning, presents several risks for these Utility operating companies.  These technologies and their related business applications have developed rapidly in recent years and continue to develop.  Entergy cannot predict the rate at which or the extent to which these emerging technologies will be broadly adopted and successful as business models.  Changes in industry practice or advances in these technologies could reduce the demand for electricity to power data centers.  Additionally, these customers may experience business downturn, which may cause the loss of these customers or may weaken their financial condition