Prime Highlight:
- Elon Musk’s xAI plans to invest $20 billion to build a massive data center in Southaven, Mississippi, creating hundreds of jobs and boosting the local economy.
- The facility will host part of xAI’s supercomputer network, which the company says will be the world’s largest with 2 gigawatts of computing capacity.
Key Facts:
- The Southaven site will be xAI’s third data center in the greater Memphis area, located in DeSoto County near the Tennessee border.
- Mississippi is offering tax incentives, including waived sales, corporate income, and franchise taxes, to support the project under a 2024 law.
Background:
Elon Musk’s artificial intelligence company, xAI, plans to invest $20 billion to build a large data center in Southaven, Mississippi, state officials announced on Thursday. Governor Tate Reeves described the project as the largest private investment ever made in Mississippi.
The facility, known as MACROHARDRR, will be located in DeSoto County near the Tennessee border, close to Memphis. It will become xAI’s third data center in the greater Memphis area. According to xAI Chief Financial Officer Anthony Armstrong, the combined sites will host what the company says will be the world’s largest supercomputer, powered by 2 gigawatts of computing capacity.
State leaders say the project will bring major economic benefits. Governor Reeves said the investment is expected to create hundreds of permanent jobs, generate thousands of subcontracting roles, and add new tax revenue to support public services in the region.
The announcement comes amid growing scrutiny of xAI’s operations in the Memphis area. Civil rights and environmental groups, including the NAACP and the Southern Environmental Law Center, have raised concerns about air pollution from existing xAI facilities located near predominantly Black neighborhoods. A local group, the Safe and Sound Coalition, has launched a petition opposing the developments, which had gathered more than 900 signatures by Thursday.
xAI did not immediately comment on the concerns. However, a fact sheet from the governor’s office stated that environmental responsibility is a core part of the company’s approach.
Mississippi has offered significant incentives under a 2024 law, waiving sales, corporate income, and franchise taxes for data center projects. Local authorities have also approved reduced property taxes. Officials have not yet disclosed the full value of the tax breaks.
xAI is expected to begin operations at the Southaven site as early as next month.
