Report links Amazon data centers to rising power rates in Mississippi

A report by Synapse Energy Economics Inc. indicates that Amazon’s data center projects in Mississippi have likely caused residential power rates to rise. The study estimates that rates have increased by about $10.60 per month for Entergy Mississippi customers, translating to roughly $38 million in additional costs since 2024, according to public utility filings.

The report examines four data centers announced since 2024 in Ridgeland, Canton, Clinton, and Vicksburg. Amazon plans to invest $25 billion in the state and create 2,000 jobs. While state leaders highlight the economic benefits of the projects, the report underscores concerns about their impact on utility rates.

Researchers noted that much of the information behind Entergy’s agreement with Amazon remains private. However, they are confident that the projects have contributed to increased rates. Ben Havumaki, one of the report’s authors, told Mississippi Today that all available evidence supports this conclusion.

In 2024, Mississippi lawmakers passed Senate Bill 2001, which allows Entergy and Amazon to bypass certain regulatory processes to expedite investments. The law also permits Entergy to recover costs related to the data centers through rates before facilities are operational, a departure from typical procedures that require public transparency and regulatory approval.

Entergy Mississippi responded to the report Thursday, stating that its customers are not subsidizing data centers. The utility said data centers pay their fair share and contribute to grid improvements. It added that Amazon’s investments help keep power bills affordable and enhance reliability across the state. Despite acknowledging a rate increase, Entergy projects that by 2030, customer bills will be about 16% lower than they would be without Amazon’s investment, though the utility provided limited data to support this claim.

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