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xAI to Invest $20 Billion in Mississippi Data Center as Part of 2GW Compute Push

State officials approved tax incentives for the Southaven campus, which they say will begin operations in February 2026.

Overview

  • Gov. Tate Reeves announced the MACROHARDRR facility in Southaven as the largest private investment in Mississippi history.
  • The site sits beside an xAI-owned power-plant parcel and near the company’s Memphis data center, forming a regional cluster tied to its Colossus supercomputer.
  • xAI executives say the combined campuses will support roughly 2 gigawatts of computing power, described as housing the world’s largest supercomputer.
  • The Mississippi Development Authority certified xAI under its Data Center Initiative, granting sales and use tax exemptions, while local governments approved reduced property taxes with total foregone revenue not yet detailed.
  • Officials project hundreds of permanent jobs and thousands of indirect roles as civil-rights and environmental groups raise air-quality and equity concerns, including a Southaven petition that has surpassed 900 signatures.