Last week, the state Public Service Commission unanimously approved a special contract that will extend the life of a Mississippi Power coal unit in order to meet energy demands for a recently announced data center project in Meridian.

Gov. Tate Reeves announced last month a $10 billion investment from Compass Datacenters. The Dallas-based company will build eight centers, and in exchange will receive multiple tax exemptions, Mississippi Today reported. The project will be located within the Mississippi Power service area. The utility, a subsidiary of Southern Company, serves 192,000 customers in the southern and eastern parts of the state.

Following a 2020 directive from the PSC to get rid of excess generation capacity, Mississippi Power initially planned to close the two coal-powered units at Plant Victor J. Daniel — in Jackson County, about 10 miles north of Moss Point — by 2027. In 2023, though, the utility pushed the retirement date back a year in order to support demand needs for its sibling company, Georgia Power, Grist reported.

Then on Jan. 9, Mississippi Power informed the PSC that, in order to power the Compass Datacenter facilities, it would have to delay closure of at least one of the coal units, as well as “potentially other fossil steam units,” until the mid-2030s.

Central District Public Service Commissioner De’Keither Stamps told Mississippi Today that the PSC’s job is to meet demand, and that until Mississippi Power has the option to include nuclear power in its arsenal, “we’re going to need all the power we can get in that service area.”

“We can’t stop economic development because we’ve got to wait, you know, 15 years for some nuclear power in the service area,” Stamps said.

Throughout the last couple decades, the country has moved away from coal as an energy source because of its contribution to global warming but also because of air and water pollution associated with coal-burning facilities. A 2023 study from George Mason University, the University of Texas and Harvard University found that exposure to fine particulate pollutants known as PM2.5 from coal plants contributed to 460,000 deaths around the country between 1999 and 2020, twice the mortality rate of PM2.5 exposure from other sources.

Sen. Jeremy England, R-Vancleave, whose district includes Plant Daniel, called the facility a “fixture of our community” because of the jobs and tax revenue it provides. He said he wasn’t aware of any health concerns related to air emissions from the plant.

“I don’t hear from any constituents that say, ‘Hey, we don’t want this here,’” England said.

England added that Plant Daniel retiring units could potentially hurt its tax assessment, meaning less revenue for public needs like the local school district. He also pointed to emission “scrubbers” that Plant Daniel and other coal facilities have added in recent years. The same 2023 study found that scrubbers have dramatically decreased sulfur dioxide emissions as well as air pollution-related deaths.

In addition to Compass Datacenters, Mississippi Power also entered into a special contract to supply power for a plywood manufacturer, owned by Hood Industries, in Beaumont, Mississippi.

The two deals, a spokesperson for Mississippi Power said, necessitate keeping the coal and other units set for retirement alive.

“We are committed to keeping the Mississippi Public Service Commission and our customers up to date and will present additional details in our upcoming 2025 Mid-Point Supply-Side Update,” spokesperson Jeff Shepard said via email. “These incredible economic development projects will create a significant number of jobs and bring billions of dollars of investment to southeast Mississippi.”

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