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xAI Unveils $20 Billion Southaven Data Center to Reach 2GW AI Compute

Mississippi’s incentives package underwrites the deal.

Overview

  • xAI will build a Southaven, Mississippi facility called MACROHARDRR that executives say will push its training compute to about 2 gigawatts.
  • Governor Tate Reeves touted the investment as the largest private project in state history, forecasting hundreds of permanent jobs and thousands of subcontracting roles.
  • The Mississippi Development Authority approved xAI under its Data Center Initiative, granting sales and use tax exemptions, with the state also waiving corporate income and franchise taxes and local governments reducing property taxes.
  • xAI targets the start of operations in February 2026, positioning the site alongside a recently acquired Southaven power plant and an existing Memphis facility to create a regional cluster.
  • Environmental and civil-rights groups have flagged air-pollution and community impacts, and a Southaven petition opposing xAI developments surpassed 900 signatures.