Study finds data centers increase energy costs
A new study by Synapse Energy Economics Inc. claims that data center construction, particularly by Amazon, has increased energy costs for Entergy residential customers in Mississippi by an average of $10.60 per month since 2024. Critics point to a state bill (SB 2001) that eased regulatory oversight, while Amazon and Entergy dispute the findings, stating that data centers contribute to grid improvements and ultimately lower bills. The debate highlights transparency concerns regarding utility agreements and data center investments in the state.
A new study from Synapse Energy Economics Inc., sponsored by advocacy groups Earthjustice and Environmental Advocates Mississippi, reports that data center construction in Mississippi has led to an average increase of $10.60 per month in energy costs for Entergy residential customers since 2024. The study highlights that Entergy, Mississippi's largest energy provider, has charged customers approximately $38 million for data center investments as of March. The report's author, Ben Havumaki, specifically criticized Senate Bill 2001, signed into law in 2024, which he states creates an "unusually frictionless path" for utilities to make investments for data centers and recover costs through rates without standard regulatory scrutiny. Havumaki emphasized the lack of public transparency in agreements between Entergy and companies like Amazon.
State and local leaders, along with Amazon, have asserted that the data center developments, including four announced Amazon sites in Ridgeland, Canton, Clinton, and Vicksburg, will inject $25 billion into the state's economy and create 2,000 jobs. In response to the study, Entergy Mississippi denied that customers are subsidizing data centers, claiming these facilities pay their fair share and contribute to grid improvements, ultimately projecting lower bills for customers by 2030. Amazon echoed this, stating it covers the full cost of power and infrastructure, including investments in grid upgrades. The Mississippi Public Service Commission, responsible for regulating utilities, is central to the debate, with Commissioner De'Keither Stamps representing Warren County, where Vicksburg is located.