A new data center is being proposed for Clinton.
The mayor and Board of Aldermen approved a tax incentive agreement with an undisclosed company during a special meeting in January. Residents have only recently become aware of the proposal, prompting them to voice questions and concerns on social media.
Data center proposals are popping up across Mississippi and the Southeast. Residents across the state are expressing concern about the secrecy that often surrounds these projects, and whether the massive consumers of electricity and water would increase costs to consumers or increase air and water pollution.
There are at least six Mississippi data center projects in the works, including the Clinton site, which would be located on Industrial Park Road. City leaders said it is expected to bring a minimum investment of $750 million and create at least 50 jobs, but they said the investment could end up being much higher.
In a statement, the city said it would be the “largest economic development in the history of the city and Hinds County.” But the Continental Tire plant that opened in Clinton in 2019 was expected to eventually bring a $1.4-billion investment and create 2,500 jobs.
The city said the data center company is not being named at this time because of ongoing negotiations. While this is common in economic development to protect trade secrets, business strategy or sensitive financials, there has been growing concern across the country about the use of non-disclosure agreements between local governments and data centers.
Entergy would be providing power to the Clinton data center, according to the city, unlike an xAI data center being built in Southaven. Elon Musk’s xAI has faced considerable community pushback over its plans to build a data center and a power plant to generate its own electricity. xAI is currently operating turbines temporarily in Southaven, which plaintiffs in a pending lawsuit say are illegally emitting pollutants.
The proposed Clinton site in the 1970s was used as a wiring plant but closed in 2009, resulting in 280 workers being laid off. It then became home to a Milwaukee Tool plant from 2021 to 2023. The property is currently owned by CHC Investments LLC of Pearl, according to records from the Mississippi secretary of state.
Clinton Mayor Will Purdie told Mississippi Today that while data centers have been implemented poorly in other places, he believes this project will be different.
Like many data centers in Mississippi, the Clinton project would receive a break on its local property taxes as part of a fee-in-lieu of taxes agreement. Even with the reduction, Purdie said that the new project would generate millions of tax dollars for the city and county and millions more that would go directly to the Clinton Public School District.
During a regular Board of Aldermen meeting on Tuesday night, Purdie acknowledged that the project had “generated considerable public interest” and read a statement on behalf of the city addressing concerns over electricity, pollution or lack of economic benefit.
“While many of the concerns raised are certainly understandable, particularly in light of situations in other places, please rest assured that the top priority of everyone in city government is, and always will be, our citizens,” the statement said.
While the data center was not on the agenda, nor was time allotted for public comment, Purdie encouraged residents to attend an upcoming work session. The next one planned by the mayor and board is scheduled for March 16.
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