IIn less than two years, Mississippi has captured the three largest capital investment projects in the state’s over 200-year-old history.
This wasn’t a matter of faltering on legacy industries — advanced manufacturing; aerospace & defense; agriculture, automotive; chemicals, distribution & logistics, energy; and forestry — but rather embracing the pursuit of a technology-driven economy.
Chalk it up to southern hospitality: Mississippi leadership knew better than to show up to the table empty handed. Speed to market, a pro-business regulatory environment, robust utility offerings and a proactive approach to collaboration are just a few priorities that have been guiding the state’s economic development strategy. The most enticing tool on hand when it comes to securing multi-billion-dollar investments? In Mississippi, it comes in the form of incentives.
Amazon Web Services (AWS) got conversations started with the announcement of its $10 billion data centers investment in Madison County in January 2024, although state documents estimate this initial price tag is likely to scale toward $16 billion. The company came out of the negotiations with an impressive $259 million incentive package that included a 10-year, 100% corporate income tax exemption; a 30-year rolling state tax exemption; a 3.15% rebate on eligible construction costs; a 100% exemption for sales and use tax on equipment; $35 million toward workforce training; and $5 million for site development.
Compass Datacenter followed suit a year later with a $10 billion data center investment in Lauderdale County. The easter Mississippi site, at the Meridian 1-20/59 Industrial Park, afforded the developer shovel-ready status, a 500-megawatt power supply commitment from Mississippi Power and a few key incentives. Aside from assistance for site preparations, Compass received a 10-year state income and franchise tax exemption and a sales and use tax exemption on construction materials, equipment and software and hardware replacements.
“From the beginning, state and local officials and businesses have been engaged and supportive in making possible our vision of building world-class, 21st century infrastructure in Mississippi.”
— Mark McComiskey, CEO, AVAIO Digital
Mississippi’s Sales and Use Tax Exemption for Data Center Enterprises has found favor with data center developers, requiring a minimum $20 million investment that will create 20 new jobs paying 125% of the average state wage. In comparison to data center incentive requirements available in neighboring states — Alabama (min. $200 million investment), Arkansas (min. $100 million investment) and Louisiana (min. $200 million capital investment, 50 new jobs) — Mississippi’s offer continues to distinguish itself in the corporate realm.
Grabbing the Bull by the Horns
Connecticut-based data center developer AVAIO Digital marked its Mississippi arrival with a $6 billion project investment, the state’s third largest capital investment project in history.
Three weeks after the official August announcement, the company broke ground on the 329-acre future AVAIO Digital Taurus campus. Like most large power users, AVAIO connected with Entergy first when embarking on its Mississippi site selection journey. Ultimately, the company selected the 1,133-acre East Metropolitan Center Business and Industrial Park, located in the City of Brandon, about 15 minutes outside of Jackson.
“Breaking ground in Brandon is an incredible milestone, and we are excited to be making this commitment in Mississippi,” said AVAIO Digital CEO Mark McComiskey. “From the beginning, state and local officials and businesses have been engaged and supportive in making possible our vision of building world-class, 21st century infrastructure in Mississippi. We are honored to work together on a project that will have lasting benefits for the community.”
Rankin First Economic Development Authority Executive Director Garrett Wright confirmed this investment reflects the first data center in Brandon and Greater Rankin County. He notes the introduction of this digital infrastructure in the region presents two major opportunities, the first being that it will begin to build an ecosystem that attracts and retains top talent by offering an array of high-quality jobs in the county.
“The second is that it makes sure that we are on the map to be able to compete and win large-scale projects here in Rankin County,” says Wright.
The Rankin First team and local utility partners worked with AVAIO for about two and a half years before finalizing the deal, fostering a valuable local partnership to navigate any roadblocks encountered along the way. It was a welcomed learning curve for the community, as they gained a keen understanding of all factors behind data center development.
“I think [AVAIO] had a lot of confidence in the entire project team over that two-and-a-half-year time frame,” notes Wright. “People did not falter. They continued making sure that we were all focused on this project and winning it for our community.”
The cultivation of the East Metropolitan Center has gradually taken place over the past 20 years albeit these efforts ramped up within the last five. This time was spent in tandem with the state’s utility partners to focus on the site’s development and necessary preparations. According to Rankin First Assistant Director Regina Todd, this leg work provided the unique factor of shovel-ready status — in comparison to other data center sites announced in the state — by the time AVAIO stepped in.
Site preparation is now underway, as the company approaches phase one of the Taurus Data Center Hub. This first phase of construction will bring over 600,000 sq. ft. of data center facilities across more than 170 acres of AVAIO’s site, carrying 116 megawatts of power capacity. This campus will offer high-speed, low-latency connectivity options, which include direct access to long-haul fiber routes that can extend to markets including Dallas and Atlanta.
On top of assistance provided by the Mississippi Development Authority through the state’s Site Development Grant Program, AVAIO has also received approval for a Data Center Enterprises tax exemption. The company has stated that phase one is anticipated to become operational by mid-2027.
Workforce development initiatives are already in the works from local community colleges and universities in the Jackson metro area — including Hinds Community College and Holmes Community College — building off of other regional data center announcements such as AWS in Madison County.
“There’s been a lot of interest in the area,” says Todd. “They’ve already had a couple graduating classes across different types of programs, such as fiber splicing. It’s been really good and that’ll only continue to grow. AVAIO has programs in other parts of the nation that they want to bring down as well and help partner on.”
Reports noted that 60 direct jobs will be created by this project, although Wright clarified that that estimate accounts for the roles created for two data center buildings. AVAIO plans to deliver up to seven buildings upon completion.
