Amazon Web Services investing $10 billion for hyperdata centers in Madison County, Canton
During this year's second special session of the Mississippi Legislature on Thursday, Mississippi lawmakers passed three bills outlining a $259 million incentive package for Amazon Web Services $10 billion project to locate two new hyperscale data centers in Canton and Madison County.
Once the session was over, Gov. Tate Reeves announced the company, Amazon Web Services, which is among the Top 20 in the world, and said the development was a great victory for the state.
About the project: Massive data centers coming to Jackson metro: When would jobs open? What would salaries be?
"This record-shattering $10 billion private sector investment will not only create 1,000 high-tech, high-paying jobs for Mississippians, but it will result in our state remaining at the forefront of innovation," Reeves said. "Mississippi is building a business climate that is ripe for further growth, especially in the technology sector. On top of that, we’re doing what it takes to prepare our workforce to take on these high-paying jobs of the future. There really is something special happening here in Mississippi, and the world is noticing."
Once open, the centers will hire 1,000 employees making an average annual salary of about $60,000 per year or more, lawmakers said Thursday. Together, the three bills established the project, an account with the Mississippi Treasury Department and gave responsibility to the Mississippi Development Authority to disburse funds and work on workforce development with the company.
As for the state incentive package, the legislature approved appropriating $44 million, $32 million of which will go to training grants and educational opportunities, and the rest will go to site development assistance.
The three bills also approved loaning Madison County $215.1 million to assist with infrastructure, including road work, water and sewer lines and also $13 million for a new fire station near the plants. That loan will be paid back through fee-in-lieu agreements with Amazon.
The project also received sales and use tax emptions for equipment, 10-year corporate income tax exemptions, among others. However, if the company fails to meet certain hiring or investment benchmarks, the state could take back sales and use tax, as well as corporate income tax breaks.
What to know: What is a hyperscale data center? How much energy does it take? Is Madison ready? We answer
Mississippi Development Authority Executive Director Bill Cork also told lawmakers after the initial 10-year tax incentives expire, the state will quickly recoup its entire investment within one year, and then some.
"We expect the state would receive $157 million within the first 15 years," Cork said.
Representatives Jill Ford, R, and Justis Gibbs, D, who both serve Madison County, told the Clarion Ledger they were both happy to see the development in their county, and are interested to see if other developments come through in surrounding areas because of this project.
"It's freaking fabulous," Ford said.
Appropriations amendment fails:
During the session, Rep. Robert L. Johnson, D introduced an amendment to the Senate's appropriation bill, which added provisions to make Amazon hire some in-state contractors.
"Let's say Mississippi is open for business, but it's open for our voters as well," Johnson said.
That amendment failed, and lawmakers in both chambers passed all three bills by vast majorities.
Grant McLaughlin covers state government for the Clarion Ledger. He can be reached at gmclaughlin@gannett.com or 972-571-2335.
This article originally appeared on Mississippi Clarion Ledger: Amazon Web Services invests $10B for data centers in Madison County MS
