Compass Datacenters has announced plans to build a $10 billion data center campus in Meridian, Lauderdale County, Mississippi. This ambitious project, revealed by Governor Tate Reeves, marks a significant development for the state’s tech infrastructure and economic landscape.
Project Details: 500MW Capacity Over Eight Years
The new campus will have a total capacity of 500MW, spread across eight data centers constructed over an eight-year period. Although specific architectural details have yet to be disclosed, the project reflects Compass’s commitment to expanding its data center footprint.
Update: Compass clarified that the $10 billion investment includes the total value of IT equipment installed by customers, rather than solely the company’s contribution.
Compass’s Perspective on the Development
AJ Byers, president and chief development officer of Compass Datacenters, shared his enthusiasm for the project:
“We are looking forward to building our next campus in Meridian. We appreciate the time and effort Mississippi Development Authority, East Mississippi Business Development Corporation, and Mississippi Power have invested with us to bring this project to fruition and look forward to bringing good-paying jobs and economic benefits to the region for decades to come.”
The Role of Mississippi Power
Power for the campus will be supplied by Mississippi Power, a longstanding contributor to the state’s economic development efforts. Anthony Wilson, president and CEO of Mississippi Power, highlighted their readiness:
“Mississippi Power has the generating power to support a growing Mississippi while maintaining reliable service for our customers. Our company is proud to be a part of the strategic team that delivered this significant investment to East Mississippi.”
Economic Incentives to Boost the Project
The Mississippi Development Authority is providing Compass with several tax exemptions to support the project:
- State Income and Franchise Tax Exemptions: A 10-year benefit to reduce operational costs.
- Sales and Use Tax Exemptions: Applied to construction materials, equipment, and hardware/software replacements.
Governor Reeves emphasized the transformative impact of the project, stating:
“This $10 billion megadeal is huge for Lauderdale County and the entire state as we continue an impressive economic development streak that is unprecedented in Mississippi.”
Compass’s Growing Global Footprint
Compass Datacenters currently operates or develops 16 sites across the US, Europe, and Israel. In addition to the Mississippi campus, the company is planning an 11.55 million square foot data center campus in Prince William County, Virginia. Since being acquired in June 2023 by Brookfield and the Ontario Teachers Pension Plan for approximately $5.5 billion, Compass has accelerated its growth trajectory.
Mississippi’s Emerging Data Center Market
While Mississippi isn’t traditionally known for its data center market, significant investments are beginning to shift this perception. Notably, Amazon announced plans for a $10 billion campus outside Jackson last year, further underscoring the state’s growing appeal for major tech investments.
FAQ: Common Questions About the Compass Data Center Campus
1. What is the timeline for the Compass data center campus?
The project will span eight years, with eight data centers planned to reach a combined capacity of 500MW.
2. How will the campus benefit the local community?
The development is expected to bring good-paying jobs, boost the local economy, and enhance the region’s tech infrastructure.
3. What tax incentives are being offered to Compass Datacenters?
Compass will receive 10-year state income and franchise tax exemptions, as well as sales and use tax exemptions on construction materials and IT hardware/software replacements.
4. What role does Mississippi Power play in the project?
Mississippi Power will supply electricity to the campus, ensuring reliable service for its operations.
5. Why is Mississippi becoming attractive to data center operators?
With large-scale investments from companies like Compass and Amazon, along with competitive economic incentives, Mississippi is positioning itself as a viable location for tech infrastructure.
