Mississippi is positioning itself as a major hub in the AI race, with a massive investment now heading its way.

Elon Musk’s artificial intelligence company xAI plans to invest $20 billion to build a data centre in Southaven, Mississippi. This marks the largest private investment in the state’s history, Governor Tate Reeves said.

The facility, named MACROHARDRR, will be built in DeSoto County. It will be near Memphis, Tennessee, and will be xAI’s third data centre in the wider Memphis region. According to xAI CFO Anthony Armstrong, the combined cluster of facilities will house what the company calls the world’s largest supercomputer. It is powered by 2 gigawatts of computing capacity.

The announcement comes amid growing scrutiny of xAI’s data centre projects in the Memphis area. Civil rights and environmental groups, including the NAACP and the Southern Environmental Law Centre, have raised concerns. They are worried about air pollution from a nearby supercomputer facility located close to predominantly Black neighbourhoods.

Local opposition has also surfaced in Southaven. A petition by the Safe and Sound Coalition seeks to shut down xAI’s operations in the area. It has gathered over 900 signatures. xAI has not commented directly on the concerns. However, a fact sheet from the governor’s office said environmental responsibility is a core commitment for the company.

Reeves said the project is expected to create hundreds of permanent jobs. It will also generate thousands of indirect subcontracting roles and long-term tax revenue for public services. As part of incentives approved in 2024, Mississippi will waive sales, corporate income, and franchise taxes for the project. Additionally, DeSoto County and Southaven have agreed to reduce property taxes sharply.

xAI is expected to begin data centre operations in Southaven as early as next month.

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