Full Breakdown
Jackson’s Lake Hico: Data-Center Talk, Legal Scrutiny, and Community Concerns
7/21/2026, 10:55:08 AM
Core Development Status
Jackson Mayor John Horhn told a federal hearing that “no data center project is in the works for the Lake Hico site.” He emphasized that any discussion of a data center remains “very, very, very premature” and that no formal application has been submitted. The city’s interim water manager, Ted Henifin, was not involved in any such talks, prompting U.S. District Judge Henry Wingate to demand his inclusion in the process.
Background & Context
Lake Hico, a 654-acre reservoir in northwest Jackson, was created in the 1950s as a recreational facility for the white community. The lake later housed a natural-gas power plant that was drained in 2020 and dismantled in 2022. Because of its history of segregation and the 2020 drainage, “people are very sensitive about what should be done at Lake Hico,” Horhn noted.
Official Statements & Responses
- Mayor John Horhn reiterated that the city has not approved any project and that the developer’s lease option merely allows “due diligence to develop the property.” He added that the city is evaluating “the highest and best uses” for the site, which could include residential, commercial, or industrial development.
- City Attorney Drew Martin confirmed there is “no application for a data center” and that the city is about six weeks from drafting a data-center ordinance, which will require permitting from the Mississippi Department of Environmental Quality (MDEQ) and review by JXN Water.
- Judge Henry Wingate questioned whether a potential data center could strain JXN Water, noting that the water utility had not been consulted in earlier discussions.
Criticism & Opposition
Local residents have expressed anxiety about the water and energy demands of a hyperscale data center. Horhn referenced the controversy surrounding the xAI data center in Southaven, where “Elon Musk … got a blank check … without the rules and regulations …” leading to “a lot of opposition.” Community leaders fear a similar burden on Jackson’s water system and ratepayers.
Conflicting Reports & Gaps
- Water-use estimate: Horhn cited an MDEQ estimate that a data center at Lake Hico would consume “just nine million gallons of water a day,” which the mayor said would have “no impact on JXN Water’s ability to operate.” The reporter has not independently verified this figure.
- Developer intent: The lease option held by Goel Investments LLC allows three years for due diligence, but the developer has not disclosed whether a data center is the intended use. The city’s moratorium on data-center projects will not take effect until August 14, leaving the final purpose of the site uncertain.
Verbatim Quotes
- “We do not want data centers to come into Jackson and place the water and energy burden on residents,” — John Horhn, Mayor of Jackson
- “There is a developer who has entered into a lease option for JPS to do due diligence to develop the property,” — Drew Martin, City Attorney
- “If JXN Water says it won’t work, that will be the end of it.” — John Horhn, Mayor of Jackson
- “It sounds like a lot, but it would have no impact on JXN Water’s ability to operate,” — John Horhn, Mayor of Jackson (paraphrasing MDEQ estimate)
What’s Next
- The city-wide moratorium on data-center permits becomes effective on August 14, delaying any approvals for at least 183 days.
- A draft data-center ordinance is expected within six weeks, after which developers must obtain MDEQ permits and water-utility review before any project can proceed.
- The lease option held by Goel Investments LLC remains active for three years, during which the developer may propose any “best and highest use” for the Lake Hico property.
The outcome of these legal, regulatory, and community-driven processes will determine whether Lake Hico evolves into a tech hub, another public amenity, or remains undeveloped.
