Gov. Reeves keeps removing barriers to entry for investors and workers.
When Dallas-based Compass Datacenters announced Jan. 9 that it would build one of the largest hyperscale data center developments in the Southeast in Meridian, Mississippi – a project that will generate $10 billion in new investments – the news only confirmed what a lot of corporate executives and site selectors were already saying: Mississippi’s business climate is firing on all cylinders.
Much like the Amazon Web Services’ $10 billion data center investment in Madison County, this project by Compass will create thousands of new direct and indirect jobs and add critical infrastructure to support businesses in Mississippi for decades.
Assistance from the Mississippi Development Authority for site preparation and critical tax exemptions paved the way for Compass to build in Meridian in East Mississippi. The city of Meridian and Lauderdale County are also assisting the project, while Mississippi Power has committed to supply about 500 megawatts of power to the site.
Corporate investment projects like these are not an anomaly in Mississippi. Since Gov. Tate Reeves took office in January 2020, the state has secured more than $34 billion in new private capital investment, culminating in 2024 being the single greatest year in the history of the Mississippi economy, the governor noted.
Signs of the economic progress are everywhere. According to data from the U.S. Department of Commerce’s Bureau of Economic Analysis, Mississippi ranked No. 2 in the nation for real gross domestic product growth for 2024. The state’s GDP growth rate of 4.2% last year represents an increase of $1.27 billion from 2023.
“The fact that Mississippi is No. 2 in the nation for real GDP growth shows how much momentum our state has,” said Gov. Reeves. “We’ve done the hard work laying the foundation for record-breaking economic success, and I’m proud of what we’ve been able to accomplish. This is another big win for our state and the people who live here.”
“By staying true to our fiscally conservative principles, we’ve sent a message to America – and to the world – that Mississippi is open for business.”
— Gov. Tate Reeves
The state showed strong signs of growth in 2024 in several key sectors, including manufacturing, agriculture, forestry, fishing and hunting. In fact, Mississippi had the No. 8 fastest growing manufacturing sector in the country last year, according to BEA.
MDA Executive Director Bill Cork notes that “Mississippi’s outstanding GDP growth is proof that our state’s pro-business policies and strategic investments are paying off. With key industries like agriculture and manufacturing contributing substantially to that growth, Mississippi is creating new opportunities, strengthening communities and building long-term, sustainable economic momentum.”
Cutting Taxes and Improving Schools
Over the last five years, Gov. Reeves and his administration have made building a stronger business climate a top priority. To accomplish that goal, he focused on cutting taxes, eliminating bureaucratic red tape, investing in site preparation and site readiness, streamlining government agencies, investing new resources into workforce development and worker skills training, and overhauling the public K-12 education system.
A decade ago, Mississippi fourth-graders ranked No. 49 in reading proficiency and grade-level attainment. Today, they rank in the top 20. The turnaround has been so dramatic that educational experts call it the “Mississippi Miracle.” Harry Anthony Patrinos, professor of education policy at the University of Arkansas, wrote for The Conversation that “this transformation was driven by evidence-based policy reforms focused on early literacy and teacher development.” He adds: “The rest of the country might want to take note.”
“I have been immensely impressed with the efforts undertaken in Mississippi to improve their economic development competitiveness.”
— Courtney Dunbar, Director of Site Selection, Burns & McDonnell
The same could be said of Mississippi’s economic reforms. Never before has one state so dramatically improved its economic development performance in such a short time. Multiple rankings confirm this:
- In January, the annual Site Selectors Survey of Site Selection magazine rated Mississippi as having the seventh best business climate in the U.S.
- Area Development magazine in 2024 ranked Mississippi No. 6 in Favorable Regulatory Environment and No. 8 in Site Readiness Programs.
- Mississippi placed sixth in total number of National Career Readiness Certificates in 2024 and showed 14.47% improvement from 2023.
- The State Tax Competitiveness Index placed Mississippi No. 6 in the nation in 2025 in corporate tax rates.
- Business Facilities rated Mississippi No. 7 in 2024 for Best Corporate Tax Climate.
Even as Gov. Reeves trumpeted these accomplishments, he made it clear that he was not done working to improve Mississippi’s standing. “Our goal is not statistics. Not dollars invested. Not even jobs created,” he said in his State of the State Address. “Our goal is families. We want Mississippi to be the best place in America to raise a family, to keep a family together, and to have your kids raise your grandkids. That is why we do it. But to make that possible, Mississippi must be the best state to build and grow a business.”
Toward that end, Reeves delivered on one of his biggest promises when he signed into law a bill eliminating Mississippi’s individual income tax on March 27. Titled the “Build Up Mississippi Act,” House Bill 1 cuts the individual income tax rate to 3.0% by 2030, followed by future annual decreases until the rate falls to zero. Reeves also signed a bill that lowers taxes on groceries from 7% to 5%.
Impressing the Site Selectors
“This is more than a policy victory,” Reeves said. “This is a transformation. From my days as lieutenant governor to my first campaign for this office – and every legislative session since – I have made this my mission. Because I believe in a simple idea: that government should take less so that you can keep more. That our people should be rewarded for hard work, not punished. And that Mississippi has the potential to be a magnet for opportunity, for investment, for talent – and for families looking to build a better life.”
Influential site selectors took note. Courtney Dunbar, director of site selection for Burns & McDonnell in Omaha, said, “I have been immensely impressed with the efforts undertaken in Mississippi to improve their economic development competitiveness.” She cited the improvement in site readiness programs, educational attainment, and the eventual elimination of the personal income tax.
Dunbar called these measures “notable changes” that “favorably impact employers and their workforce across the state,” adding, “This almost guarantees increased economic development opportunity in the coming years.”
Reeves says he’s just getting started. “By staying true to our fiscally conservative principles, we’ve sent a message to America and the world that Mississippi is open for business,” he said. “We have what it takes to get your products to market, and we will always get the job done. That’s why since 2020, we have created tens of thousands of new jobs and an economy that works better for every Mississippian. The results have been felt across our state from North Mississippi to our Gulf Coast and everywhere in between. Make no mistake, something special is happening here and it’s something we should all celebrate.”
