Recently I attended a Mississippi CCIM Chapter event where an economic development representative gave a detailed account of the history of the project and what it could look like when it is completed. There were several “nuggets” I picked up that I haven’t seen in the press releases to date, and I have incorporated them into a blog on my thoughts and interpretation of this project.
In a groundbreaking development for Madison County, Mississippi, Amazon Web Services (AWS) has embarked on an ambitious initiative under the Code name, “Project Atlas”. Sidebar: Have to love code names, one of the times we worked on project with MCEDA was an assignment for UPS a few years back, dubbed “Project Wheels” that is immediately across Highland Colony Parkway from one of the AWS sites. Project Atlas will usher in an era of unprecedented growth and technological prowess, setting a new benchmark for economic and digital transformation in the region.
Here’s some of what I’ve learned about AWS’s investment and its transformative potential:
1. Significant Job Opportunities
AWS’s commitment to Mississippi is poised to generate in excess of 1,000 high-paying jobs, offering salaries in the six-figure range. This influx of employment opportunities is expected to significantly elevate the local economy, providing a substantial uplift to individuals and families across Central Mississippi. Based on a concept I learned in my CCIM curriculum, Economic Base Multiplier, which illustrates the impact of both direct and indirect jobs on an economy and that the ripple effect of Project Atlas will be huge. Direct jobs are those created by an initial investment or business activity, such as new positions for Amazon. Indirect jobs are additional employment opportunities that arise in other sectors, such as suppliers or local services in areas like restaurants and retail, as a result of the spending by the direct employees and the business itself. This concept shows how an initial employment boost can lead to a wider circle of job creation and economic growth across a region.
2. Robust Construction and Market Expansion
AWS, as of now, plans to construct 10-12 expansive buildings per site. The first one on the books will be an expansive 1,000 feet by 3,000 feet— for your quick math, that is 3,000,000 square feet. If each building on the site is that size, which only the future will tell, this one project alone will more than double the size in total Building Area of our entire industrial market in the Jackson MSA, see chart from CoStar’s 2023 Industrial Market Report.
The two sites will be housed on 1,700 acres in two distinct locations within Madison County. This exclusive Amazon campus underscores the company’s substantial investment and commitment to the area, with no plans to include other users or sell off any part of the land. Another fact that I found online in researching this topic, is that this announcement represents around 10% of AWS total investment in the life cycle of the company’s history.
3. A Decade of Sustained Development
The project build out will be 5-8 years until completion. The construction phase of the Amazon Web Services project is set to create 2,000 to 3,000 jobs, remember Economic Base Multiplier (EBM) from above, marking a period of vibrant economic activity and growth. Site work commenced in October, funded in advance by MCEDA to meet timelines, and significant progress is already evident. The first building will be going vertical in March 2024.
4. Unmatched Energy Demand
Upon completion of the project, AWS will become the largest customer of Entergy, highlighting the project’s vast scale and its implications for the region’s energy infrastructure. To accommodate this demand, Entergy will look to bring back online a former plant in the MS Delta, further showing the ripple effect an announcement of this magnitude can have, even outside of the Jackson MSA.
5. The Fruit of Collaboration
The realization of AWS’s project in Mississippi is the result of relentless effort and collaboration, at all levels of local and state government agencies. This collaboration started as a conversation five years ago and transpired to working relentlessly the last two years on a daily basis. Per the local economic development rep who spoke, when their AWS contact was asked how did Mississippi ultimately land this project, “they flat outworked everyone else.” This demonstrates Mississippi’s unwavering commitment to fostering growth and willingness to work hard to get what you want.
6. Investing in the Workforce of Tomorrow
AWS has laid out comprehensive plans for workforce development, starting with education initiatives for students as young as fifth graders all the way up through the university system. This long-term strategy aims to build a skilled labor force ready to support not only AWS’s needs, but also the broader technological sector in Mississippi. This could be a major step in the right direction to addressing Mississippi’s “Brain Drain”
AWS’s investment in Madison County represents more than just economic development; it’s a testament to the transformative power of technology and collaboration. By creating thousands of jobs, building cutting-edge infrastructure, and investing in future talent, AWS is not only laying the groundwork for its own success but also for the prosperity of the entire region. As Project Atlas progresses, it promises to bring about a new era of innovation and opportunity, making Mississippi a pivotal player in the technology and data center landscape.
