Elon Musk's artificial intelligence venture, xAI, is poised to make the single largest private investment in Mississippi's history with a colossal new data centre project.
A Historic Investment for DeSoto County
Governor Tate Reeves announced on Thursday, 8 January 2026, that xAI will spend a staggering $20 billion to construct a data centre in Southaven, Mississippi. The facility, to be named MACROHARDRR, will be situated in DeSoto County, close to the Tennessee border and the city of Memphis.
This development marks the company's third data centre cluster in the greater Memphis region. According to xAI Chief Financial Officer Anthony Armstrong, this grouping will ultimately host "the world's largest supercomputer," boasting a massive 2 gigawatts of computing power.
Jobs, Incentives, and Community Backlash
Governor Reeves personally thanked Elon Musk during the announcement, predicting the project would bring hundreds of permanent jobs to the local community, alongside thousands of indirect subcontracting roles. The investment is also expected to generate significant tax revenue to support public services.
However, the deal involves substantial tax incentives. Under legislation passed in 2024, the state will waive all sales, corporate income, and franchise taxes related to the xAI development. Furthermore, DeSoto County and Southaven have agreed to allow substantially reduced property taxes. The Mississippi Development Authority did not immediately provide figures on the total value of these tax concessions.
The project is not without controversy. The announcement comes as xAI faces growing scrutiny over its existing data centre projects in the Memphis area. The NAACP and the Southern Environmental Law Center have raised significant concerns about air pollution from xAI's facilities, which are located near predominantly Black communities.
A local opposition group, the Safe and Sound Coalition, has launched a petition calling for xAI's operations in the area to be shut down. As of Thursday afternoon, the petition had garnered more than 900 signatures. xAI did not immediately respond to requests for comment on these environmental concerns, though a fact sheet from the governor's office stated that environmental responsibility is a "core commitment" for the company.
Operations Set to Begin Imminently
Despite the ongoing debate, construction and development are moving forward at pace. xAI is expected to begin data centre operations at the Southaven site as soon as next month, signalling a rapid timeline for the multi-billion dollar endeavour. This project underscores the intense competition and substantial infrastructure demands within the burgeoning artificial intelligence sector.
