Mississippi data centers linked to rising electricity rates amid local opposition
Jackson, Mississippi residents are actively opposing a proposed data center, citing concerns about electricity rates and environmental impact. A report by Synapse Energy Economics, prepared for Earthjustice and Environmental Advocates of Mississippi, claims that data centers are causing residential electricity rates to rise in Mississippi due to legislative actions like SB2001, which reduced oversight.
Jackson, Mississippi is experiencing strong local opposition to a proposed data center development near Forest Avenue and Interstate 220 in Northwest Jackson, with dozens of protestors attending a recent Planning Board meeting. Separately, a new report by Synapse Energy Economics, commissioned by Earthjustice and Environmental Advocates of Mississippi, suggests that data centers in Mississippi are contributing to increased residential electricity rates, contrary to promises from Entergy officials.
The 27-page report details how Senate Bill 2001 (SB2001), passed by the Mississippi Legislature in 2024, curtailed the Public Service Commission's oversight on energy infrastructure expansion for data centers, transferring significant risk to residential consumers. The report estimates that Entergy's residential ratepayers have already paid approximately $38 million by March 2026 for data center-related investments, projected to reach $74 million by the end of 2026, resulting in an average monthly bill increase of $10.60. It highlights concerns about transparency, secret rates for large customers like Amazon, and the potential for cost shifting where residential customers subsidize data centers.
Critics also voice concerns about potential stranded assets if data centers scale back or exit, leaving ratepayers to cover infrastructure costs. The article, an opinion piece by Wyatt Emmerich, editor of The Northside Sun, argues that Mississippi's desperation for economic development leads to detrimental deals, potentially eroding the state's historical advantage of low utility prices. Opposition also notes noise and pollution concerns, citing a 'Musk data center' in Southaven, MS, as an example.