Elon Musk's artificial intelligence company xAI plans to invest $20 billion in a new data center located in Southaven, Mississippi. Governor Tate Reeves announced the project, noting it represents the largest private investment in the state's history. The data center, named MACROHARDRR, will be situated in Mississippi's DeSoto County, near Memphis, Tennessee. This facility will be the company's third data center in the broader Memphis region.
xAI CFO Anthony Armstrong stated that this cluster of data centers will host what is described as "the world's largest supercomputer," boasting 2 gigawatts of computing power.
The announcement comes amidst existing scrutiny regarding xAI's data center projects in the Memphis area. The NAACP and the Southern Environmental Law Center (SELC) have voiced concerns about potential air pollution from xAI's supercomputer facility, particularly its proximity to predominantly Black communities in Memphis. Additionally, the Safe and Sound Coalition, a Southaven group opposing xAI's developments, has initiated a petition advocating for the cessation of xAI's operations in the area, which has garnered over 900 signatures.
xAI has not yet provided comment on these environmental concerns. A fact sheet distributed by the Mississippi governor's office, however, indicated that environmental responsibility is a "core commitment" for xAI.
Governor Reeves acknowledged Musk during the announcement, projecting that the investment would generate hundreds of permanent jobs, thousands of indirect subcontracting positions, and tax revenue to support public services. Mississippi is offering significant incentives for the development. Under data center incentive laws passed in 2024, the state will exempt xAI from all sales, corporate income, and franchise taxes on the project. While the Mississippi Development Authority has not disclosed the precise amount of tax revenue foregone, saving sales taxes on computing power purchases is expected to be substantial. DeSoto County and the city of Southaven have also agreed to significantly reduce property taxes for the project.
xAI anticipates commencing data center operations in Southaven next month.