Mississippi should set rules before data centers continue growing, Sen. Hillman Frazier says ...Middle East

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Mississippi has an opportunity before it. Across the country, states are competing to attract data centers and the investment they promise.

New jobs, new tax revenue and new technology are all things worth pursuing. But as a state senator, I believe we have another responsibility that is just as important: making sure the people who live here aren’t left asking questions after decisions have already been made.

That conversation is happening today in state Senate District 27 that I represent.

Sen. Hillman Frazier Credit: Courtesy photo

Over the past several months, I have listened to residents concerned about a proposed data center in Jackson. They have attended public meetings, organized their neighbors and asked thoughtful questions about what this project could mean for their community. They are not asking Mississippi to turn away economic opportunity. They are asking for transparency and the assurance that growth will not come at their expense.

Those are reasonable requests. And the Jackson City Council, with the leadership of Councilman Brian Grizzell, did the right thing, listening to residents’ concerns and passing the state’s first data center moratorium. The 183-day pause will allow the council more time to build a plan that puts Jackson residents first.

When a project will place new demands on our electric grid, consume significant amounts of water and reshape a community for decades, the public deserves more than promises. They deserve facts and clear standards. And they deserve to know that the state government has done its homework before asking local communities to shoulder the consequences.

Too often, these projects are presented as an all-or-nothing proposition. Either we welcome them without question or we lose out to another state.

But, I reject that choice.

Mississippi has every reason to welcome innovation. We also have every reason to insist that companies investing here play by clear rules that protect our citizens.

Other states have already begun asking these questions. North Carolina recently repealed sales tax exemptions for electricity used by data centers, Florida recently passed a bill to regulate water usage by data centers, and Texas Governor Greg Abbott is asking lawmakers to repeal data center sales tax exemptions in 2027 and adopt new rules requiring the industry to pay more of its infrastructure costs.

My peers across the country have proposed policies that require greater transparency around energy and water use, protect residential ratepayers from subsidizing private infrastructure and ensure that communities understand the long-term impacts before construction begins. Those are conversations Mississippi should be having, as well.

As state legislators, we should also take a fresh look at the incentives we offer. Taxpayer dollars should encourage investments that provide lasting benefits to Mississippi families, not simply reward companies for choosing a location.

We should be honest about how many permanent jobs these facilities create, what infrastructure they require and who ultimately pays the bill if costs exceed expectations. These should be the requirements, especially when the companies asking for public incentives are owned by billionaires, and yes, even a trillionaire.

Good economic development leaves families and communities stronger long after the ribbon is cut.

That is why I intend to work with residents, colleagues from both parties, local leaders, utility experts and business leaders to develop thoughtful statewide policies before Mississippi sees another wave of data center development. We have an opportunity to learn from the experiences of other states instead of repeating their mistakes.

The people I represent have reminded me of something simple but important – growth works best when the public has confidence in the process. That confidence comes from openness. It comes from planning. And it comes from making sure the voices of local communities carry just as much weight as the promises made in corporate boardrooms.

Mississippi does not have to choose between economic growth and protecting our communities. We can do both.

But first, we have to set the rules.

Bio: Democratic Sen. Hillman Frazier of Jackson has represented state Senate District 27 in Hinds County since 1993. Frazier, a consultant, previously served in the Mississippi House. 

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