Data Centers: Costs and Customer Benefits

America’s electric companies work 24 hours a day, 365 days a year to power the American economy and ensure the United States is home to the jobs, industries, and technologies of tomorrow.

They are working with tech companies, hyperscalers, and data centers to power the next wave of American innovation—while delivering clear benefits to the grid and existing customers.

Entergy Mississippi President and CEO Haley Fisackerly and Amazon Web Services (AWS) Head of Energy and Water for the Americas Brandon Oyer joined the Electric Perspectives podcast to discuss data center and electric company partnerships and a new electric rate and tariff study from Energy and Environmental Economics, or E3.

Following is an abbreviated transcript, lightly edited for length and clarity. To listen to the full episode and catch up with other recent interviews, visit electricperspectives.com/podcast.

Electric Perspectives (EP): Brandon, tell us about your role at AWS and how you work with energy partners, including Entergy Mississippi.

Brandon Oyer (BO): As the head of power and water here for the Americas with AWS, I have the distinct privilege of working with a bunch of very bright people around the country and in Canada, Mexico, and South America. We get to work with utility partners to craft rates and contracts that power AWS on time and at a cost that delights our customers, while at the same time making investments into local communities—from the East Coast to the West Coast to the middle part of the country.

I continuously get to see opportunities to innovate and refine how we power data centers responsibly, how we power them reliably, and how we power them in a path to continue being clean.

That's fun. It's a challenging role. The times are exciting, and we're growing. It's fun to see the United States electric grid growing at a high rate in comparison to history.

We like to look around corners and make sure that we're doing the right thing for the communities that we live in. We want to make sure our customers aren't being burdened on their electric rates.

That's why we think this E3 study is important. We took time to dive in and learn here, so I look forward to talking about it a little bit more.

On the economic development impact, in Madison County, Miss., we're investing $10 billion to build two data center campuses, creating at least 1,000 full-time jobs. In Warren County, Miss., we're investing $3 billion—the largest private investment in the county's history. We’re creating another 200 jobs at that data center campus while supporting 300 additional jobs in and around the community.

Combined, these investments will support an estimated 3,000 jobs to bring these data center campuses to life and add $3.9 billion to Mississippi's GDP. These are high-paying jobs, including data center engineers, network specialists, operation managers, and security specialists.

EP: Haley, tell us about Entergy Mississippi’s customers and the communities that you serve?

Haley Fisackerly (HF): Sure. Entergy Mississippi is one of the five operating companies of Entergy Corporation. We serve 460,000 customers in the western part of Mississippi, in 45 of Mississippi's 82 counties. We've been serving the area since 1923.

About 60 percent of our customers are coalesced in what we call the metro area around the capital city of Jackson, Miss. That’s where AWS is making most of their investments.

Most of the 45 counties that we serve are in very rural areas—a lot of agriculture. In Jackson, there's a very diverse mix of businesses, education, some manufacturing. We haven’t historically had a large industrial base in Mississippi like our sister companies in other states. We have more residential and commercial customers, so having a large customer like AWS definitely changes our profile from that standpoint.

EP: Tell us more about the E3 study and its key takeaways.

BO: The No. 1 finding from that study is that Amazon data centers are not being subsidized by their utility customers. There’s no cross-subsidization between a residential customer and a large-load customer, such as an Amazon data center.

We've seen this study after study. If you look at the Joint Legislative and Audit Review Committee, they published similar findings in 2024. If you look at the Lawrence Berkeley National Lab report that was released earlier this year, it found the same thing.

We actually find that these investments are enabling companies to make investments for the broader grid. Historically, customers would have to pay for this, but now that large load is coming along, these bigger customers are able to absorb that cost.

We find that data centers generate surplus revenues to the costs of producing and delivering electricity—on the order of about $33,000 per megawatt in 2025, growing to $60,000 per megawatt in 2030.

This surplus revenue enables the electric companies to continue making investments while not causing cross-subsidization. And, these crucial investments in grid infrastructure do everything from meeting immediate needs to supporting local residents to driving commercial growth while improving reliability. It’s a fun time to be a part of this.

EP: Haley, how is your team at Entergy Mississippi working with large customers like Amazon, and how does this work strengthen the grid and deliver value to your customers?

HF: Brandon touched on a good bit of this. If you take a moment to think about our industry, we have extensive infrastructure that we use to serve our customers: power plants, transmission lines, distribution lines, and a lot of these are fixed costs.

At the same time, we are facing aging infrastructure, the need to reinvest, weather risks that are impacting our business, and customer expectations. We are more dependent on electricity to power our lives and to support the way we work than ever before. That means there’s a lot of demand on the grid.

We’ve known that we need to make grid investments. Sadly, without demand growth in our area, the cost of our business was escalating very quickly. More than 20 percent of our customers live below the national poverty level. A large portion are living paycheck to paycheck. Affordability is a No. 1 issue for us.

What we’re able to do with Amazon is bring in this large customer with all the other benefits that Brandon discussed: new jobs and huge capital investments that are allowing us to make meaningful investments and improve the grid serving all of our customers.

We're also seeing them pay the full freight of their costs. We're having to make upgrades to the transmission system that improves import capabilities that benefit everyone, and they're paying those incremental costs. Substations that will have to be built to serve their facilities—they're paying 100 percent of those costs.

What is more exciting about this, and it makes me excited, is that we know we've got to invest to improve reliability. We had a $600 million capital plan already planned just to make the investments to improve our grid. Because of the new revenues coming in from AWS, we're going to be able to increase that by more than 50 percent—spending another $300 million on our reliability plan.

All of this will bring huge value from better service, more reliable service, and at a more affordable rate. In fact, because of AWS, we were able to pull a lot of those investments forward and improve reliability. We have a 50-percent reduction in outages with a 50-percent increase in spending, with no cost to customers. This is exciting, transformative, and it will make a difference in the lives of our customers and the communities we serve.

BO: There is a narrative out there that data centers are driving up costs. Haley, since we first started working together, back in 2023 and 2024, have you seen any shift in our thinking on this? Have you seen a shift since that narrative started to take hold?

HF: I’ve been in this business for 30 years and CEO of this company for 17 years. I’ve negotiated a lot of deals. Amazon and AWS were totally different characters. You were very cognizant of making sure this would not adversely impact customers and communities.

There has been a need for speed to market, service reliability, and recognition that these costs need to be covered.

Of late, there has seemed to be a lot of misinformation and confusion out there about what is driving rates.

In Mississippi, there was legislation passed to make this deal happen. The governor, the Mississippi legislature, and the public service commission were very supportive of the economic opportunity and made it very clear that this cannot harm existing customers. The legislation states specifically that, in my words, AWS is to pay their incremental cost to serve and provide benefits back to customers.

These new investments in the grid, from new generation down to enhanced transmission, are going to improve capabilities that benefit everyone.

EP: Brandon, how is your team working to support communities like those in Warren and Madison counties?

BO: In addition to paying our fair share, I do want to highlight that this isn't something new for us. This has been an operating tenet for Amazon for quite some time. Defining a good rate structure and providing impact to the community has been table stakes for us.

We're making significant investments, and we’re spending time and money to enable the local workforce. That's an important trait when we go and grow our business. We’ve partnered with Mississippi to build a skilled workforce for the future by partnering with Mississippi AI Innovation Hub and the AI Talent Accelerator program.

We’ve invested nearly $400,000 into the Bean Path, which is a Jackson-based AI tech educational nonprofit that's impacted 8,000 Mississippians. We're also proud to have the first cohort completed of the Infrastructure Pre-Apprenticeship Program in Holmes Community College.

These programs represent a commitment towards creating direct pathways from education to employment. We’ve also launched the Amazon Warren County Community Fund and invested an initial $150,000 to be managed by a non-profit, Change X. That grant supports local initiatives focused on science, technology, engineering, and math education; sustainability and environmental programs; digital skills; cultural and heritage programs; and health and well-being initiatives. It's open to individuals, community groups, schools, and nonprofits all across Warren County.

These are just a couple of the things that we do that impact the customers around us. We just want to have a lasting, positive impact and be a good partner in the communities where we operate.

EP: Haley, Entergy's long been a leader on workforce development and making sure that you're having positive community impacts. What have you all been seeing, and how does Amazon’s work complement the work that your team is doing?

HF: I'm a fourth-generation Mississippian, and I am so excited by what we're seeing here. We have struggled with brain drain and jobs being lost. Amazon has come in, and we have now brought in a new sector that’s creating new job opportunities for young people.

The $10 billion minimum that Amazon is investing in Madison County is expected to generate an incremental $80 million per year in ad valorem taxes. Half of that goes to the local school district. Think about the young lives that are going to be changed.

The infrastructure improvements, the water system improvements, the road improvements from this mean that local taxes won’t have to be raised for some time because of the revenue coming in here.

More than 55 local businesses have received contract work or work directly at these data centers. These are often small mom-and-pop businesses, though they can also be very large companies.

We have seen manufacturers in Mississippi announce expansions to make the components used by data centers and the electric power industry. More than 2,000 jobs have been created so far, so the ripple effect is like one we've never seen before.

We've worked with a lot of great companies that have come in and made investments, but it's usually been made after they have built out their facilities, and they're up and running.

Amazon came in earlier, started to work with local educational groups, looked at training opportunities, and looked at other partnerships as they’ve been building this out. When you think about all of those different businesses that are benefiting from this, the tax revenue coming in, that has a positive impact on local individuals and families.

EP: Electric companies are always looking to balance affordability with reliability. Haley, how do these projects align with your efforts to deliver both of those things for customers?

HF: I mentioned earlier that we were faced with this dilemma when we knew we had to make a lot of investment in this region, and we were not growing here in Mississippi. What Amazon has allowed us to do is pull those investments forward. For example, we knew we would have to build two new power plants post-2030. We knew that we had an opportunity to deploy more solar renewables and batteries.

The fact that we were able to pull those projects forward means we're saving customers more than $2 billion. These plants are also much cleaner.

They use less water. They also are much cleaner technologies. They will have carbon capture capabilities and the ability to use hydrogen if and when that becomes economic. That alone will save more than $700 million in commodity costs for our customers.

We're also dealing with more storm costs every year. Now, having a large customer like Amazon at the table means we can share in those fixed costs and create rate relief for our customers. It’s a huge value in the sense that a large customer is now helping share in the cost of large investments.

We're doing things right now that we would not have been able to do had this opportunity not come forward with Amazon.