Over two days, the Mississippi Artificial Intelligence Regulation Task Force heard from 19 speakers on the potential impact of data centers in the state.
The goal was to listen to a variety of people and to gather facts on some of the biggest issues being raised around data centers, such as power bills, water usage and jobs. The task force is expected to make recommendations to the Legislature before next year’s regular session.
“We worked to bring everyone to the table today. From the companies building these facilities to the agencies that regulate them to our utility providers, local elected officials, economic developers and citizens who have concerns,” said Rep. Jill Ford, a Republican from Madison and one of the task force co-chairs. “So we can hear every perspective before making recommendations.”
The Legislature created the task force during its 2025 session to study AI usage and regulation in the state. Task force members include representatives from the attorney general’s office, Department of Information Technology Services, the Mississippi Artificial Intelligence Network and industry.
Power companies address concerns over rate hikes
Mississippians and people across the country have raised concerns about the impact of data centers on neighborhoods, electricity prices and local water systems and rates.
Representatives from various companies, including Entergy Mississippi and Amazon Web Services, challenged claims that data centers would hike utility costs or deplete water levels. They said they are paying for their infrastructure needs and that the build-out will not raise rates for or negatively impact residential rate payers.
“Despite what others are asserting, customer rates today, residential rates, are actually lower than they would have been if AWS was not a customer of Entergy Mississippi,” said Jeremy Vanderloo, vice president of business operations and strategy at Entergy.
Mississippi Central District Public Service Commissioner De’Keither Stamps listens during the Mississippi Artificial Intelligence Regulation Task Force hearing at the Capitol in Jackson on Monday, July 13, 2026. Credit: Eric Shelton/Mississippi TodayVanderloo said that the contracts Entergy has with AWS include a minimum bill, a contract term and termination provisions to protect existing customers from incurring costs if the large customer walks away.
Time and time again, speakers said they have a lot of trust in the Public Service Commission and the Mississippi Department of Environmental Quality, which regulate utility rates and some aspects of data center development. However, in the case of Amazon, some of the PSC and other oversight was waived by lawmakers in 2024.
Speakers: Let local governments regulate
Most speakers coming before the committee emphasized the importance of local control over development and cautioned the Legislature against excessive state regulation.
“Communities know how to handle those issues and they can do it right if they’re allowed to do it,” said Vanderloo.
“I think the best support the state can offer communities is in areas where we ultimately cannot regulate, said Clinton Mayor Will Purdie. “Most of these issues, as I said, are profoundly local issues best addressed at the community level.”
“When it comes to the issues of noise and the local issues of that nature, those are local matters that should stay local,” said Bill Cork, the executive director of the Mississippi Development Authority. “Lauderdale County and Madison County and places like that ought to decide for themselves what they want in their community.”
Regulation of behind-the-meter power generation emerged as one area for future legislation. Behind-the-meter generation is when a company creates its own energy and never hits the public utility system. SpaceXAI is already doing this in Southaven and a Jackson developer recently proposed a plan to generate power for industrial tenants.
“This is not a criticism of a particular company, but when a data center is off the grid or behind the grid, there’s no opportunity for that data center to help lower rates,” Vanderloo said.
“There’s some gaps and some grey areas in the current law related to behind-the-meter power that eventually this Legislature is going to have to grapple with,” Cork said.
A call for more accountability
Shannon Samsa, the executive director of the Safe and Sound coalition and a Southaven resident, was the only person testifying who said they live close to one of Mississippi’s data centers. Rep. Ford said that the task force had reached out to 10 groups, but only Samsa showed up to talk to the committee.
Samsa and other Southaven residents live close to SpaceXAI’s data center and private power plant where the company is running over 50 mobile turbines. The turbines are the subject of several ongoing lawsuits.
For almost a year, Southaven residents have voiced concerns about the noise, air pollution and lack of transparency surrounding the project. Some residents can hear noise from the turbines at all times of day, even from inside their homes.
“This isn’t about being for or against AI. It never was. It’s about whether the people of Mississippi deserve transparency, accountability and leaders who will protect the health and well-being of our families and communities before the interests of a private corporation,” Samsa said.
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