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Entergy announced that customers in Mississippi are expected to save more than $2 billion on electricity bills as new data center projects increase demand and help fund grid improvements.
The projected savings are part of a broader $5 billion benefit across Entergy’s service territories in Mississippi, Louisiana, and Arkansas.
The announcement follows plans by Amazon Web Services to build two multibillion-dollar data centers in Madison County and another facility in Warren County. Meanwhile, AVAIO Digital has selected Rankin County for a new data center project.
While some residents expressed concerns that large data centers might drive up electricity prices, Haley Fisackerly said the projects are expected to reduce costs for customers.
“When you don’t have growth, and 25% of your customers are below the national poverty level, affordability becomes a big concern,” Fisackerly said on the radio program MidDays with Gerard Gibert. “Just like any business or community, you need growth. You need economies of scale. By bringing in a large customer like AWS, they are bringing the volume we need, but they also bring in additional revenues that are going to allow us to invest more to improve reliability.”
According to the company, large energy users such as hyperscale data centers provide stable demand and additional revenue, which helps spread infrastructure costs across a broader customer base.
Entergy officials said revenue from the data center agreements will also support major power grid upgrades that customers would otherwise have to fund.
State lawmakers, Tate Reeves, and the Mississippi Public Service Commission helped enable large technology companies to contribute to the utility’s $300 million “Superpower Mississippi” modernization initiative.
“These large technology customers will help pay the cost for needed power grid maintenance and upgrades that would otherwise have been borne by our existing customers,” Fisackerly said. “During a rising cost environment, when we are having to replace two half-century-old power plants with new units, securing such relief right now is perfect timing for our residential and small commercial customers.”
The grid improvements are expected to reduce power outages and improve reliability, particularly in a region frequently impacted by severe weather.
Entergy said its agreements with data center developers include financial safeguards designed to protect existing ratepayers.
The contracts require prepayments, multi-year commitments, credit requirements, and early termination penalties, ensuring the projects deliver financial benefits while minimizing risk to existing customers.
Although concerns remain about environmental impacts and noise associated with large data centers, officials said the new projects should lower energy costs while strengthening the region’s power infrastructure.
Originally reported by Caleb Salers in Super Talk.
