JACKSON, Miss. – In a groundbreaking announcement, Gov. Tate Reeves revealed that xAI, Elon Musk’s artificial intelligence firm, plans to invest a staggering $20 billion in constructing a data center in Southaven, Mississippi. This project marks the most significant private investment in the state’s history.

The new facility, named MACROHARDRR, will be situated in DeSoto County, Mississippi, close to Memphis, Tennessee. This center will be the third xAI data center in the Memphis vicinity. According to xAI’s CFO, Anthony Armstrong, this network of data centers will boast “the world’s largest supercomputer” with an impressive 2 gigawatts of computing power.

This development comes amid heightened scrutiny over xAI’s data center endeavors in the Memphis region. The NAACP and the Southern Environmental Law Center have voiced concerns about air pollution from xAI’s supercomputer facility, which is located near predominantly Black neighborhoods in Memphis.

The Safe and Sound Coalition, a group based in Southaven, has launched a petition opposing xAI’s operations in the area. As of Thursday afternoon, the petition, which advocates for the cessation of xAI’s local projects, has garnered over 900 signatures.

When approached for comments regarding these environmental issues, xAI has yet to issue a response.

A fact sheet released by the Mississippi governor’s office said environmental responsibility is a “core commitment” for xAI.

During the announcement, Reeves personally thanked Musk. Reeves predicted the investment would bring hundreds of permanent jobs to the community, thousands of indirect subcontracting jobs, and tax revenue to support public services.

Under the incentives for data centers passed in 2024, the state will waive all sales, corporate income and franchise taxes on the xAI development. Saving sales taxes on the computing power that xAI is purchasing would likely be worth a substantial amount of money, but the Mississippi Development Authority did not immediately respond to The Associated Press’ questions about how much tax revenue Mississippi will give up.

DeSoto County and the city of Southaven have also agreed to allow substantially reduced property taxes.

xAI is expected to begin data center operations in Southaven next month.