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The Jackson Wire

Jackson politics, property, and power.

New York Spent the Week Rationing Electricity. Jackson Is About to Decide How Much of Its Grid to Sell.

Con Edison cut power to thousands and reduced voltage for 400,000 customers during the heat wave, a preview of what a grid without slack looks like. Jackson votes on its data center rules July 14. The two stories are the same story.

By Jackson Wire Staff·July 5, 2026·5 min read

Last week, the largest city in America started turning off the lights on purpose. As a heat wave pushed demand toward the grid's ceiling, Con Edison cut power entirely to roughly 9,800 customers in southwest Queens to protect failing equipment, reduced voltage by 8 percent for nearly 400,000 customers across Brooklyn and Queens, and watched more than 80,000 customers lose power to weather-related equipment failures. A new Canadian transmission line meant to shore up the city during exactly this kind of week went down for a day in the middle of it.

None of that was caused by a data center. It is what happens to any grid running without slack, and it is worth studying in Jackson this week for one reason: on July 14, the City Council takes up the ordinance that will decide how much of central Mississippi's slack gets sold to the fastest-growing electricity consumers on earth.

The margin is the whole story. New York's grid operator warned this spring that the state faced a historically thin safety margin heading into summer, and that the city could face reliability violations beginning next year. When the heat arrived, the margin was gone, and the choices left were the bad ones: cut voltage, cut neighborhoods, and ask everyone else to conserve. A grid does not fail all at once. It fails at the edges first, in the neighborhoods where the equipment is oldest.

What is eating grid margin nationally is not air conditioning. It is compute. Data centers are on track to consume roughly 1,000 terawatt-hours globally this year, which would rank them among the largest electricity consumers on earth if they were a country. A single AI campus can draw 100 megawatts or more, the load of a small city that never sleeps, never conserves, and never turns down. In the PJM region, the 13-state grid serving the mid-Atlantic, capacity prices for the 2026-2027 year cleared at $329 per megawatt-day, more than ten times the price two years earlier, with data center growth identified as a major driver. Those costs flow to 65 million ratepayers.

Mississippi is not in PJM. It sits in a different regional grid, and Entergy Mississippi insists the math here is different: the company says its deals with Amazon, Meta and others will save existing customers roughly $2 billion over 20 years by spreading fixed costs across enormous new loads. Critics answer that the 2024 state law fast-tracking these projects gutted Public Service Commission oversight, and Earthjustice has estimated Mississippi ratepayers may already be paying about $11 more a month. Amazon's actual rate terms with Entergy are confidential, which means the public argument is being conducted between one side's promise and the other side's estimate.

This is the context for what Jackson decides next week. The council's draft data center ordinance, the product of a June 22 public hearing where 25 of 26 speakers opposed the projects, is expected back before the body on July 14. Saxum Investment Company's request to rezone 230 acres in northwest Jackson waits on those rules. And developer Gabriel Prado is pursuing something the New York story makes newly interesting: a data center powered by its own private plant, off the grid entirely, a structure that avoids straining the shared system and also avoids nearly every form of public oversight that exists.

The New York comparison is imperfect in ways that cut both directions. Jackson is not Queens. Central Mississippi has land, and its grid is not running at a coastal megacity's razor margin. That is precisely the pitch: come here, we have room. It is also how a region with room becomes a region without it. Capacity margin disappears one approved interconnection at a time, and the customers who feel it first are never the ones who signed the confidential rate agreements.

Jackson also carries a memory New York does not. This is a city where the water system failed in 2022 because decades of deferred maintenance met one bad week of weather. Residents at the June 22 hearing made the connection themselves, telling the council they do not yet trust the drinking water and asking why the city would add industrial-scale demands to infrastructure that has already failed them once. The specific fear is water-hungry cooling. The general fear is arithmetic: systems run near their limits break at their limits.

There is a version of this that works for Jackson. Data centers pay taxes on a scale a shrinking city cannot ignore, and firm long-term loads can genuinely stabilize a utility's finances if the contracts are priced honestly. The ordinance the council is writing is where honesty gets enforced or waived: water consumption limits, noise, emissions, restrictions on temporary power generation, and, above all, who bears the cost of the transmission and generation these projects require. Every one of those questions has a New York answer now, visible from Howard Beach to Ozone Park, about what happens when the answer is nobody thought about it.

The heat wave that broke New York's week will reach Mississippi eventually; it is July, and it always does. When it comes, Entergy will ask customers to conserve, the way it does most summers. The difference between a conservation request and a voltage reduction is margin. The difference between a voltage reduction and a neighborhood going dark is also margin. On July 14, Jackson starts deciding, in zoning language that will read as dry as dust, exactly how much of its margin is for sale, and at what price, and to whom.

Sources: amNewYork, ABC7 New York, Utility Dive, The City Reporter, Spectrum News, Consumer Reports, Goldman Sachs analysis via public reporting, Mississippi Today, and prior Wire reporting on the Saxum rezoning, the Prado proposal, and the June 22 public hearing.

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