by John McCurry
Energy legislation aimed at boosting Mississippi’s stature as a nexus for data centers and other large power users received much attention during the state’s latest legislative session, which ended on April 15.
Several energy-related bills were signed into law by Gov. Tate Reeves. Chief among the legislation is HB 1393, authorizing the Mississippi Energy Infrastructure Fund, which authorizes the Mississippi Development Authority (MDA) to provide financial assistance to projects that boost the state’s energy infrastructure.
Rep. Brent Powell, chairman of the Mississippi House of Representatives Public Utilities Committee, was the primary sponsor of the legislation. He was asked by the MDA to introduce the bill. Powell says one of the bill’s goals is to give Mississippi a leg up on other states recruiting data centers.
“We want to make sure they [data center companies] know we’re ready to go,” he says, “and that they can get online quicker using this plan than if they just came in cold and had to wait a year or two for the supplies.”
The bill was approved, but no funds were attached. Powell says that may come next legislative session.
“We had hoped to put some (funds) in there this year, but we had budget constraints. We felt it was important enough to get the bill passed, and then we can add funds as needed. MDA also has another fund that has a little bit of money in it, that they can support this if they need to,” Powell says. “So, we have that structure. But ultimately, the goal is to put some money into it next year and be able to really get online with this.”
Powell acknowledges that energy was a major emphasis in the legislature’s session. “We’re trying to get ahead. A lot of data centers are coming in, so we’re trying to make sure that No. 1, we don’t overload the systems with everything, and No. 2, we give them the ability to get everything going quickly.”
Corey Miller, Mississippi’s state economist and director of the University Research Center at the University of Mississippi, agrees the legislation puts the state in a better position to recruit data centers.
“The companies that are building data centers are looking for places where they can do that in a way that allows them to be competitive,” Miller says. “They are looking for more affordable locations.”
Also enacted was Mississippi HB 1633, which broadens the types of costs covered by the state’s Site Development Grant Program. These grants can now cover utility improvements serving industrial property, electrical and gas delivery upgrades, and acquisition of easements or rights-of-way. The grants are intended to help local entities improve the marketability of industrial property for economic development purposes.
Also approved was a bill expanding energy projects eligible for certain property tax exemptions in Mississippi by adding “battery energy storage systems” to the definition of a project that can receive up to a 50% ad valorem tax exemption from county supervisors if it involves a significant capital investment.
The Legislature also appropriated $43 million to the Mississippi Development Authority for site development grants, including $20 million for energy infrastructure needs.
Future energy initiatives in the state will have another resource available. Last November, Mississippi State University launched the Energy Resilience & Innovation Hub. It serves as a neutral, university-based resource for research, technical expertise and evidence-informed dialogue, according to university officials. The Hub is designed to help decision-makers, industry and communities better understand the opportunities, tradeoffs and long-term implications of energy choices.
Narcisa Pricope, Mississippi State University’s associate vice president for research and economic development, is the Hub’s director. Pricope says the Hub may serve as a resource to state leaders by providing research-based information, technical expertise and access to interdisciplinary subject matter experts to inform decision-making around energy resilience, infrastructure, workforce, economic development and community impacts.
“Through efforts such as R-STEP [The U.S. Department of Energy’s Reliable Energy Siting through Technical Engagement and Planning program], MSU is already helping build technical capacity among local governments and stakeholders, and the Hub can extend that same evidence-based, nonpartisan convening role to broader energy discussions,” Pricope says.
As Mississippi’s energy sector continues to grow, the Hub will help convene the right parties to ensure Mississippi remains competitive, resilient and prepared for emerging energy opportunities.