RM Elon Musk’s xAI Launches Record-Breaking $20 Billion Data Center Project in Mississippi
Elon Musk’s artificial intelligence company, xAI, is moving forward with plans to build a massive $20 billion data center in Southaven, Mississippi, according to an announcement by Governor Tate Reeves. The project is expected to represent one of the largest private investments ever made in the state and will generate hundreds of long-term jobs across DeSoto County.
The new facility, named Macroharder, will be developed inside an existing building that xAI has acquired and is currently refurbishing. The site is strategically located near xAI’s recently purchased power plant in Southaven, as well as one of the company’s operating data centers in Tennessee. Once completed, the Southaven data center will boost xAI’s total computing capacity to nearly 2 gigawatts.
Beyond upgrading the facility, the investment is expected to deliver significant tax revenue for the local community. These funds will support essential services and initiatives, including public safety, healthcare, education, emergency services, law enforcement, parks, and other city programs benefiting Southaven residents.
The data center is scheduled to begin operations in February 2026.
Commenting on the announcement, xAI CEO Elon Musk said the company is expanding at an unprecedented speed. He noted that this will be xAI’s third major data center in the greater Memphis region and that Macroharder will elevate the company’s Colossus AI training system to approximately 2 gigawatts, making it the most powerful AI computing system in the world. Musk praised both the execution speed of xAI and the support provided by the state of Mississippi.
Governor Reeves described the project as a historic milestone for Mississippi’s economic development. He emphasized that the $20 billion investment is the largest in the state’s history and will have a lasting impact on the region. According to the governor, the arrival of xAI in DeSoto County positions Mississippi as a growing hub for high-tech innovation and signals strong momentum for future investments across the state.
