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The city of Clarksdale is in negotiations for a data center on a 648-acre site, seeking to rezone from commercial and agricultural to light industrial. Stipulations include a $5 million impact fee and water usage guarantees.

No finalized plans exist, and the Board of Commissioners tabled the proposal during a contentious meeting. Officials debated potential economic benefits versus community concerns regarding water and power usage.

Clarksdale currently has five data centers under construction, with Elon Musk's xAI also developing a facility in Southaven. Despite community pushback, demand for data centers is rising due to AI investments. Local leaders emphasize the need to position Clarksdale as a tech hub.