Elon Musk's xAI to invest $20 billion to build data centre in Mississippi

Elon Musk's xAI to invest $20 billion to build data centre in Mississippi

09 Jan 2026, 04:08 PM

This latest expansion by xAI demonstrates the company's determined effort to strengthen its position against its rivals like OpenAI and Anthropic.

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Elon Musk's AI company xAI will invest more than $20 billion into constructing a new data center in Southaven, Mississippi, according to an announcement from Governor Tate Reeves.

This investment reflects the growing need for expanded computing capabilities driven by the explosive growth in generative artificial intelligence.

xAI expects to launch data centre operations at the Southaven facility by February 2026.

Musk had previously revealed the acquisition of this data center, dubbed "MACROHARDRR", on December 30, noting it would boost xAI's computing capacity to 2 gigawatts, though he didn't initially disclose financial figures or the specific location.

The new facility's positioning is strategic, situated near xAI's recently purchased power plant site in Southaven and the company's current Memphis, Tennessee data center. Memphis is home to xAI's Colossus supercomputer cluster, which the company claims holds the distinction of being the world's largest.

This latest expansion by xAI demonstrates the company's determined effort to strengthen its position against its rivals like OpenAI and Anthropic through the development of more sophisticated AI models.

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