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Jackson data center ban - momentum for change grows

By The Wire  ·   · 

A Jackson council member questioned on Wednesday why the city was moving to repeal its data-center moratorium more than a year early. At the same meeting, the city attorney said the ordinance meant to replace it is not finished yet.

At the Jackson City Council’s regular session on Nov. 11, City Attorney Drew Martin confirmed that the moratorium does not lapse until April 2027 unless the council votes to end it sooner. A council member identified in the meeting as Councilwoman Clay then challenged the push to act early.

“So why are we rushing to take action before April or before 2027 to do anything?” she said. “I know Councilman Stokes put this on the agenda and he’s not here today, but I think at some point we all need to be held accountable as council people and we need to work toward doing what’s right by the city.”

Councilman Stokes, who placed the repeal item on the agenda, was not present for the discussion.

Martin told the council that the proposed regulatory ordinance for data centers is still incomplete. “We’re not quite there,” he said. “Although I think we can get a structure in place to give to the council as soon as we can get a few free hours to finish it up. I’m hoping to get that done this week.”

Martin also told council members that “tax abatements are not necessarily required by any means and there’s a bunch of different ways to approach that.”

No draft ordinance or abatement terms were presented, and the council did not vote on the matter.

Jackson’s caution contrasts sharply with neighboring Madison County, which welcomed Amazon Web Services’ data-center investment and is now positioned for a large and growing revenue stream. Amazon plans to build 34 data centers in the county, which are expected to generate tens of millions of dollars in new tax revenue each year. The county expects to collect $5.8 million from Amazon this fiscal year. County economic development officials project its share rising to $16.5 million by 2029 and $29 million by 2031. Part of that money will repay a $215 million state infrastructure loan, and the county keeps all of it once the debt is cleared. Canton and Madison County schools are also expected to receive millions of dollars from data-center fees starting in January.

Rankin County is also on course for gains. Officials there estimate a planned AVAIO Digital data center will bring in about $23 million a year in new revenue once it is fully running, most of it going to the local school district.

The exchange in Jackson shows the council divided over a live regulatory decision long before the moratorium would end on its own. Meanwhile, the rules and any incentive terms for developers are still being drafted outside public view. While the capital city deliberates, its neighbors are already lining up the revenue.

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