What incentives are available to data centers in Mississippi?
Mississippi offers various state and local tax incentives for data centers, including a 10-year exemption on sales, use, corporate income, and franchise taxes for companies investing at least $20 million and creating 20 jobs. While proponents like the Data Center Coalition argue these incentives are crucial for competitiveness, critics question their generosity. Amazon, for example, is set to pay $28 million to Madison County and the Canton School District in 2027.
Mississippi provides state and local tax incentives for data centers, including a 10-year exemption on sales and use taxes for construction materials and technology, as well as corporate income and franchise taxes. To qualify, companies must invest a minimum of $20 million and create at least 20 full-time jobs paying 125% of the average annual state wage, which is currently around $49,700. The Mississippi Development Authority (MDA) is responsible for approving and monitoring these companies, with penalties for failing to meet requirements.
Dan Diario, Vice President of the Data Center Coalition, defends these incentives as a critical tool for Mississippi's competitiveness, pointing to a report showing data centers brought in $141 million in state and local taxes in 2024. However, John Mosina, president of the Center for Economic Accountability, criticizes the tax breaks as