What is xAI building in Southaven, Mississippi?

xAI is building a massive data center, an investment exceeding $20 billion, to significantly increase its computing power for AI.

When will xAI's new Mississippi data center be operational?

xAI expects the data center operations in Southaven to begin in February 2026.

How will xAI's new data center impact the AI landscape?

The new facility will enable xAI to train more advanced AI models, intensifying competition with established AI leaders.

Home / Technology / xAI Bets Big: $20B Data Center Fuels AI Race

xAI Bets Big: $20B Data Center Fuels AI Race

9 Jan

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Summary

xAI investing over $20 billion in a Mississippi data center.
Operations expected to begin in February 2026.
Investment aims to boost AI model training and competition.

xAI Bets Big: $20B Data Center Fuels AI Race

Elon Musk's artificial intelligence startup, xAI, is set to invest more than $20 billion in developing a substantial data center in Southaven, Mississippi. This significant expansion is a direct response to the surging demand for computing power driven by advancements in generative AI, aiming to bolster xAI's competitive edge against industry leaders.

The new facility, named "MACROHARDRR," is slated to commence operations in February 2026. This strategic location in Southaven is adjacent to xAI's recently acquired power plant and its existing data center in Memphis, Tennessee. The proximity to its supercomputer cluster, Colossus, further enhances its operational capacity.

This substantial investment reflects the high costs associated with scaling AI infrastructure. xAI's move highlights the intense race among major tech players to secure the necessary hardware and power to train increasingly sophisticated AI models. The company has already reported significant cash expenditures in the initial months of the year.