How Mississippi enticed Amazon with $260 million in tax breaks

Amazon’s plan to build two hyperscale data centers in Madison County, Mississippi has been hailed as the state’s most significant economic development announcement. With major tax incentives and a substantial investment of $250,000 from the state, this project is expected to create numerous job opportunities and generate tens of millions of dollars for the county.

Amazon Web Services (AWS) is set to build two new data centers in different areas of the county, covering over 1,700 acres of land. These data centers will be integrated into AWS’s cloud computing infrastructure.

Lawmakers have put together an enticing package of incentives for corporations, which includes a ten-year exemption from corporate income tax. Additionally, businesses will benefit from a three percent rebate on construction costs. Furthermore, the package offers rolling state tax exemptions that have the potential to last for up to thirty years.

In order to retain them, Amazon must consistently invest a minimum of $500 million and create an additional 50 jobs each year.

In addition to the $215 million loan provided by the state to Madison County for site infrastructure work, lawmakers have also allocated $44 million for training and site planning.


Gov. Tate Reeves and other statewide officials celebrated the Amazon announcement, highlighting its significant impact on the economy. The company plans to invest $10 billion in capital, creating 1,000 new jobs across the two centers.

According to documents shared with lawmakers, Amazon’s goal of creating 1,000 jobs is not expected to be achieved until 2034, which is a decade away from now.

State Senator John Horhn, a Democrat from Jackson, expressed his belief that the job estimates and economic impact provided are on the conservative side.

Madison County taxpayers can look forward to one major benefit, as the company will be paying fees in lieu of taxes, according to him.

According to Horhn, the Canton School District has the potential to receive an annual funding of $30 million, while the Madison County Schools could potentially receive up to $10 million per year.

The county is projected to generate tens of millions of dollars in tax revenue from the project. This money will be used to repay the $215 million loan.

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