xAI announces record-breaking $20 billion supercomputer investment in Southaven
Photo: Gov. Tate Reeves announced the xAI investment in Southaven Thursday. (Credit Tate Reeves on x.com)
SOUTHAVEN, Miss. – Governor Tate Reeves and executives from xAI announced Thursday a landmark investment exceeding $20 billion to establish a massive artificial intelligence data center in Southaven, marking the largest private sector investment in Mississippi history.
The project, officially titled MACROHARDRR, is set to transform the “Digital Delta” by creating hundreds of permanent high-tech jobs and thousands of indirect subcontracting positions throughout DeSoto County. The investment is more than double the size of any previous private economic development project in the state.
“Mississippi is not just making news; we’re making history,” Governor Reeves said during a news conference at the Southaven site. “This $20 billion investment is 50 times larger than major projects we celebrated just a few years ago. It secures our state’s role as a global leader in the future of technology.”
The World’s Largest Coherent Compute Cluster
The Southaven facility will serve as a cornerstone for xAI’s supercomputing efforts. xAI officials noted that the region now boasts the highest “coherent compute density” in the world.
The site will eventually support approximately two gigawatts of compute power, integrating with xAI’s existing “Colossus” infrastructure nearby. The data center is being housed in a retrofitted 800,000-square-foot facility, with xAI officials praising the state’s ability to move at “the speed of business.”
“We have decided that this is where we are going to build the world’s largest supercomputer,” said an xAI official at the news conference.
Community and Economic Impact
Southaven Mayor Darren Musselwhite emphasized that the development is a “win-win” for the local community. Beyond direct employment, the tax revenue generated by the $20 billion investment will fund:
- Infrastructure and Public Safety: Support for police, firefighters, and road improvements.
- Education: Increased involvement and funding for local schools.
- Health and Human Services: Vital programs for DeSoto County residents.
“Any city in the world would love to have this project,” Mayor Musselwhite said. “We know a good deal when we see one, and this is an extra special one for the citizens of Southaven.”
State Incentives and Growth
Bill Cork, CEO of the Mississippi Development Authority, clarified that xAI utilized standard statutory data center incentives already on the books, which include sales and use tax exemptions on equipment and temporary corporate income tax exemptions.
The announcement comes as Mississippi reports record-breaking economic figures, including being ranked second in the nation for real wage growth and maintaining an all-time low unemployment rate.
