In a landmark announcement for the tech industry, Elon Musk's artificial intelligence venture, xAI, is set to construct a colossal data centre in the United States. Governor Tate Reeves of Mississippi revealed that the project, representing an investment of over $20 billion, will be located in Southaven, DeSoto County.
A Record-Breaking Investment for Mississippi
The development, to be named "Macroharder," marks the single largest economic development project in Mississippi's history. xAI has already acquired and begun retrofitting a building to host the new data centre's operations. The facility's strategic location places it near a recently acquired power plant site in Southaven and an existing xAI data centre in neighbouring Tennessee.
Upon its completion, the Southaven data centre is projected to boost the company's total computing capacity to a staggering nearly 2 gigawatts. This massive infusion of computational power is aimed at training xAI's next-generation AI models. The centre is scheduled to commence operations in February 2026.
Economic Boost and Community Benefits
The impact of this investment extends far beyond the tech sphere. The project is expected to generate hundreds of permanent jobs in DeSoto County, providing a significant boost to the local economy. Furthermore, the substantial investment will translate into increased tax revenue for the City of Southaven.
These funds are earmarked to support vital public services and initiatives, including:
- Public safety (police and fire departments)
- Education
- Healthcare and human services
- Parks and community development
Leadership Hails "Insane Execution Speed"
Elon Musk, the CEO of xAI, expressed his enthusiasm for the project's rapid progress. He stated that xAI is scaling at an "immeasurable pace" and that Macroharder represents the company's third massive data centre in the greater Memphis area. Musk hailed the development as pushing their "Colossus training compute" to be the most powerful AI system on Earth and credited the "insane execution speed" of both his team and the state of Mississippi.
Governor Tate Reeves echoed this sentiment, calling the investment a "record-shattering" achievement that will transform the DeSoto County region. He emphasised that the project sets a new pace for high-tech investments in Mississippi and solidifies the state's position as a leader in the ongoing technological revolution. "There is truly no better time to invest in Mississippi," Governor Reeves concluded.
