Mississippi News

Clarksdale considers rezoning for potential data center project

The city of Clarksdale is exploring the possibility of developing a large data center on a 648-acre site between the Sunflower River, U.S. 278, Tallahatchie Street and the Roundyard neighborhood. During a contentious city board meeting Monday night, officials considered a proposal to rezone the area from commercial and agricultural use to light industrial, along with stipulations for the project.

Those stipulations included a $5 million impact fee to the city, guarantees about water usage, and property setbacks. However, no concrete plans for the site have been announced, and the board ultimately tabled the discussion without making a decision. Jon Levingston, executive director of the Crossroads Economic Partnership, said the company involved is a global firm interested in being a good neighbor.

City leaders debated the benefits of rezoning and potential drawbacks for residents. Ward 2 Commissioner Jimmy Harris emphasized the opportunity for economic growth, saying, “We’re crazy if we shut the door on this.”

Representatives from Clarksdale Public Utilities addressed concerns about possible rate increases, with Luke Howard, the utility’s chief financial officer, stating there is no direct link between a data center and higher rates for residents. Some officials, including Ward 1 Commissioner Ray Sykes and Ward 4 Commissioner Linda Downing, expressed the need for more public clarity about the project’s impacts, citing past community experiences with similar developments.

Mississippi currently has five data centers under construction, including one in Southaven by Elon Musk’s xAI, which is also building its own power plant. The project has attracted national attention over environmental concerns related to temporary gas turbines. Despite scrutiny, demand for data centers continues to grow, driven by investments in AI infrastructure and potential tax revenue benefits, though residents remain wary about water, power use, and transparency.

Local business owners see potential benefits, with real estate developer Shiva Adireddi emphasizing the importance of positioning Clarksdale as a tech hub. Levingston urged the board to approve rezoning quickly, citing the potential for transformative economic development.

The meeting was described as confusing and unstructured, with some community members remaining after a closed-door executive session to debate the issue. After an initial failed motion, the board voted to reconsider rezoning with stipulations designed to minimize environmental harm, then tabled a final vote. Ward 4 Commissioner Linda Downing criticized the process, saying many constituents had already left and expressing concern that some in government might seek to remove restrictions for the project.

Source: Original Article