Elon Musk’s xAI to invest $20 billion in Mississippi data centre

Elon Musk’s AI company xAI is developing a $20 billion data centre in Southaven, Mississippi, Governor Tate Reeves announced in a press release. The project, as per the official statement “will represent a corporate investment exceeding $20 billion and will create hundreds of permanent jobs throughout DeSoto County.” The data center will be known as Macroharder.


xAI has purchased and is retrofitting a building to house the new data center operations. It is in proximity to xAI’s newly acquired power plant site in Southaven and one of the company’s existing data centers in Tennessee. Upon completion, the Southaven data center will increase the company’s computing power to nearly 2 gigawatts.



In addition to building rehabilitation, xAI’s substantial investment will also provide tax revenue to support public safety, health and human services, education, fire fighters, police, parks and other initiatives that benefit the City of Southaven. The data centre is expected to begin operations in Southaven in February 2026.


Announcing the new data centre, xAI CEO Elon Musk said:


“xAI is scaling at an immeasurable pace — we are building our third massive data center in the greater Memphis area. MACROHARDRR pushes our Colossus training compute to ~2GW – by far the most powerful AI system on Earth. This is insane execution speed by xAI and the state of Mississippi. We are grateful to Governor Reeves for his support of building xAI at warp speed.”


Governor Tate Reevs said:


“This record-shattering $20 billion investment is an amazing start to what is sure to be another incredible year for economic development in Mississippi. Today, Elon Musk is bringing xAI to DeSoto County, a project that will transform the region and bring amazing opportunities to its residents for generations. This is the largest economic development project in Mississippi’s history. It sets the pace for continued high-tech investments across our state and strengthens Mississippi’s position as a leader in this exciting tech revolution. There is truly no better time to invest in Mississippi.”