WASHINGTON (dpa-AFX) - xAI (XAAI.PVT), the artificial intelligence company founded by Elon Musk, on Friday said it is locating a new data center in Southaven, Mississippi, representing a corporate investment of more than $20 billion.
The company expects to begin data center operations in Southaven in February 2026.
The company has purchased and is retrofitting an existing building for the facility, which will be known as macrohardrr and is located near xAI's newly acquired power plant site in Southaven and one of its existing data centers in Tennessee.
Upon completion, the Southaven data center is expected to increase xAI's total computing capacity to nearly 2 gigawatts.
The project is expected to create hundreds of permanent jobs across DeSoto County.
xAI said the investment will also generate tax revenue to support public safety, health and human services, education, and other local initiatives in Southaven.
The Mississippi Development Authority has approved xAI for its Data Center Incentive, providing sales and use tax exemptions on eligible computing equipment and software, with additional support from the City of Southaven and DeSoto County through fee-in-lieu agreements.
xAI was founded in 2023 and is headquartered in Silicon Valley. xAI develops advanced artificial intelligence technologies, including its flagship generative AI chatbot Grok and related API tools.
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