New development could change how data centers are powered. What to know

Gabriel Prado, CEO and President of PraCon Global Investment Group, through its affiliate Prado AI Industrial, has filed a Request for Declaratory Opinion with the Mississippi Public Service Commission. The request seeks confirmation that private, on-site power generation for internal use by AI industrial campuses and their tenants does not constitute a "public utility" under Mississippi law. Prado stated his company plans to develop large-scale AI industrial infrastructure projects, including data centers and AI semiconductor facilities, across Mississippi, intending to power them off-grid to prevent increased electricity costs for residents. This initiative could significantly alter how power is delivered to the growing data center economy in Mississippi, potentially impacting major utilities such as Entergy Mississippi and Southern Company. Entergy Mississippi has made substantial investments in grid improvements, partly financed by companies like Amazon, to ensure reliable energy and lower rates. However, Prado's plan aims to bypass the traditional grid, enabling development in areas with less existing infrastructure, including the Mississippi Delta and Southwest Mississippi. He emphasized that his projects will operate entirely off-grid, providing electricity as an "incidental component" of real estate leasing, consistent with Mississippi law, and will not pass costs to ratepayers. The Clarion Ledger also reported on broader concerns regarding data center energy consumption. While states like Maine have enacted statewide moratoriums on large data centers due to energy rate fears, the Jackson City Council is considering a proposed ordinance for a temporary moratorium and a new regulatory framework. Existing data center developers in Mississippi, including AWS in Madison and Warren County, Compass Datacenters in Meridian, and AVAIO Digital in Brandon, have historically relied on utilities like Entergy and Mississippi Power for rapid energy delivery.