POLITICO Tech Podcast Summary

Title: Can the South Win the AI Race?
Host: Stephen Overlea
Guest: Governor Tate Reeves of Mississippi
Release Date: June 12, 2025

Introduction

In the episode titled "Can the South Win the AI Race?" Stephen Overlea engages in a comprehensive discussion with Mississippi Governor Tate Reeves. The conversation centers on Mississippi's ambitious initiative to transform itself into a technological powerhouse, dubbed the "Digital Delta," positioning the American South as a leader in the burgeoning fields of artificial intelligence (AI) and data technology.

Mississippi's Vision as the "Digital Delta"

Governor Reeves articulates Mississippi's strategic vision to become a central hub for AI development and data center construction. This initiative aims to ignite the next industrial revolution in the South, leveraging the state's unique advantages.

"Mississippi is trying to position itself as, quote, the Digital Delta, a hub in the American south where tech companies will build data centers, develop artificial intelligence, and basically usher in the next industrial revolution."
— Stephen Overlea [00:38]

Energy Policy and Infrastructure

A critical factor in Mississippi's strategy is its robust energy infrastructure. Governor Reeves emphasizes the state's abundant and reliable power supply as a cornerstone for attracting large-scale tech investments.

"We have excess capacity. And we are in the process, through Mississippi's power play, of streamlining our regulatory environment to make it easier to build more power."
— Tate Reeves [03:17]

Reeves underscores that the availability of power is essential for supporting hyperscale data centers and advanced manufacturing, which are integral to AI technology development.

AI Framework and Workforce Development

Governor Reeves discusses the state's proactive approach in establishing a flexible AI framework through an executive order signed in January. The framework is designed to adapt to the rapidly evolving technological landscape without restricting future innovations.

"We have to focus on training our workers for the jobs not of the last 50 years, but the jobs of the next 50 years."
— Tate Reeves [06:31]

Mississippi has launched the Mississippi AI Network (ME), a collaborative effort among high schools, community colleges, and higher education institutions to prepare the workforce for AI-augmented roles. This initiative aims to mitigate potential job displacement due to AI advancements by equipping workers with relevant skills.

Federal Policies and Support

The conversation shifts to the interplay between state and federal policies. Governor Reeves expresses cautious concern over potential federal rollbacks on energy tax credits and the inclusion of a moratorium on state-level AI regulations in Congress's reconciliation bill.

"We believe in individualized decisions. We believe states need to make these decisions rather than anybody or any bureaucrat in Washington."
— Tate Reeves [09:33]

Despite these challenges, Reeves remains optimistic about federal support for workforce development and training initiatives, which are crucial for Mississippi's AI ambitions.

Economic Development and Attracting Tech Companies

A significant highlight of the discussion is the strategic investments by major tech companies in Mississippi, serving as catalysts for further economic growth and technological clustering.

"The announcement a year and three months ago that Amazon Web Services was going to invest over $10 billion in Central Mississippi really was the catalyst for our state."
— Tate Reeves [18:29]

Reeves cites multiple investments, including Compass Data Centers in Meridian and Meta's $10 billion investment in Louisiana near Mississippi's border, as evidence of the region's growing appeal. The presence of robust fiber networks enhances Mississippi's attractiveness by facilitating efficient data transmission.

Future Outlook and Conclusion

Governor Reeves envisions the "Digital Delta" as a self-sustaining ecosystem attracting more tech companies and talent, fostering a network effect that propels Mississippi to the forefront of the AI industry. He emphasizes the importance of continued federal support and pro-business policies to sustain this momentum.

"We're here to tell the rest of the industry, hey, maybe you ought to look in Mississippi."
— Tate Reeves [21:27]

Reeves concludes by affirming Mississippi's commitment to fostering a thriving tech environment, positioning the state as a key player in the national and global AI landscape.

Key Takeaways

1. Strategic Positioning: Mississippi aims to become the "Digital Delta," a major hub for AI and data technology in the American South.
2. Energy Infrastructure: The state's abundant and reliable power supply is a critical advantage for attracting tech investments.
3. Workforce Development: Mississippi is proactively training its workforce through the Mississippi AI Network to prepare for AI-augmented jobs.
4. Federal-State Dynamics: While federal policies pose challenges, Mississippi seeks support for workforce initiatives and maintains a preference for state-level decision-making.
5. Economic Catalysts: Major investments from companies like Amazon Web Services and Meta act as catalysts for further technological and economic development in the region.
6. Future Growth: The establishment of robust fiber networks and continued investments are expected to create a self-sustaining tech ecosystem in Mississippi.

Governor Tate Reeves' insights reveal a well-thought-out strategy for transforming Mississippi into a technological leader, leveraging state-specific advantages while navigating the complexities of federal policies.

Notable Quotes:

• "We have to focus on training our workers for the jobs not of the last 50 years, but the jobs of the next 50 years."
  — Tate Reeves [06:31]

• "We believe states need to make these decisions rather than anybody or any bureaucrat in Washington."
  — Tate Reeves [09:33]

• "The announcement a year and three months ago that Amazon Web Services was going to invest over $10 billion in Central Mississippi really was the catalyst for our state."
  — Tate Reeves [18:29]

• "We're here to tell the rest of the industry, hey, maybe you ought to look in Mississippi."
  — Tate Reeves [21:27]

This episode provides valuable insights into how Southern states like Mississippi are positioning themselves to lead in the AI and technology sectors, highlighting the interplay between state initiatives and federal policies in shaping the future of the American economy.