ISTANBUL 

Elon Musk’s artificial intelligence startup xAI will invest more than $20 billion to establish a large-scale data center in Southaven, Mississippi, the state’s governor announced Thursday.

“The project will represent a corporate investment exceeding $20 billion and will create hundreds of permanent jobs throughout DeSoto County,” Gov. Tate Reeves said in a statement.

The data center, named MACROHARDRR, will be built in Southaven, DeSoto County, near Memphis, Tennessee. Once completed, the facility is expected to increase xAI’s total computing capacity to nearly two gigawatts.

Reeves described the investment as “the largest economic development project in Mississippi’s history.”

“In addition to building rehabilitation, xAI’s substantial investment will also provide tax revenue to support public safety, health and human services, education, firefighters, police, parks and other initiatives that benefit the City of Southaven,” the statement said.

Reeves thanked Musk for the investment, noting that it will create hundreds of permanent jobs, generate thousands of indirect subcontracting jobs and contribute to tax revenues supporting public services.

xAI's Memphis data center faces criticism

The announcement comes as xAI faces scrutiny over its existing data center operations in the Memphis area.

Civil rights and environmental groups, including the NAACP and the Southern Environmental Law Center, have raised concerns about potential air pollution from xAI’s supercomputer facilities, particularly those located near predominantly Black communities in Memphis.

The Safe and Sound Coalition, a Southaven-based organization opposing xAI’s regional expansion, has collected more than 900 signatures on a petition calling on the company to halt its activities in the area.