Amazon Web Services holds ceremonial groundbreaking in Madison County

Saturday, June 29, 2024

Magnolia Tribune

Amazon Web Services holds ceremonial groundbreaking in Madison County

The $10 billion economic development project represents the largest private sector investment in Mississippi history.

By: Frank Corder

A ceremonial groundbreaking was held Monday morning at the site of the Amazon Web Services' (AWS) planned $10 billion investment in Madison County. It is the single largest private sector investment in Mississippi history.

The company's investment in the Magnolia State will create at least 1,000 high-tech, high-paying jobs for Mississippians in multiple data center complexes in two Madison County industrial parks.

Governor Tate Reeves was present at the event attended by local, state and federal leaders, including U.S. Senators Roger Wicker and Cindy Hyde-Smith. Reeves said it is hard to put into words just how important AWS' investment is to the future of Mississippi.

"It's truly a watershed moment in Mississippi economic development history, and I'm proud of the massive impact this project will have on our state," Governor Reeves said. "In recent years, we've seen multiple record-breaking private sector investments, we've reached historic new heights when it comes to education, and we've worked hard to train our workforce for the jobs of the next 50 years."

Governor Reeves said the "record-shattering investment from Amazon Web Services" will continue to ignite further economic growth and drive the state forward.

"The future of Mississippi is bright, and the only day better than today is tomorrow," Reeves said.

Earlier this year, the Governor called a special session to consider an incentive package for the economic development project. As previously reported by Magnolia Tribune, lawmakers swiftly passed the incentives in January with only one vote in opposition in both chambers.

Coined "Project Atlas," the incentives provided include the state committing to a 10-year, 100% corporate income tax exemption, along with incentives for Sales and Use Tax for construction as well as investments made 12 months post-construction. Amazon will receive a rebate of 3.15% of eligible construction costs and a 100% exemption for Sales and Use Tax on equipment. There is also a 30-year rolling state tax exemption. In the event Amazon continues to make the annual minimal investment of $500 million and hires 50 additional jobs, those tax benefits could be extended. The company will begin paying income tax after 10 years but will not be exempt from payroll taxes.

Lawmakers appropriated $44 million to the project, none of which will be used for facility construction. Of that, $35 million is directed to go to workforce training through community colleges and other workforce programs, and $5 million is directed to site development support.