Governor Tate Reeves issued the following statement.
xAI, the American artificial intelligence company founded by Elon Musk, is locating a data center in Southaven. The project will represent a corporate investment exceeding $20 billion and will create hundreds of permanent jobs throughout DeSoto County.
xAI has purchased and is retrofitting a building to house the new data center operations. The data center, which will be known as MACROHARDRR, is in proximity to xAI’s newly acquired power plant site in Southaven and one of the company’s existing data centers in Tennessee. Upon completion, the Southaven data center will increase the company’s computing power to nearly 2 gigawatts.
In addition to building rehabilitation, xAI’s substantial investment will also provide tax revenue to support public safety, health and human services, education, fire fighters, police, parks and other initiatives that benefit the City of Southaven.
The Mississippi Development Authority has approved xAI for its Data Center Incentive, which provides a sales and use tax exemption for all computing and equipment software used by companies certified as data centers by the agency. The City of Southaven and DeSoto County are also supporting xAI’s projects through fee-in-lieu agreements.
Headquartered in Silicon Valley, xAI was founded in 2023 to develop advanced AI technologies to accomplish its mission to understand the universe. The company operates in the AI, social media and technology sectors. Its flagship product is Grok, a generative AI chatbot integrated with the social media platform X. The company also offers application programming interface tools such as image generation, voice and agent tools, along with the xAI For Government suite of products for American federal, state and local government uses.
The company expects to begin data center operations in Southaven in February 2026.
A fact sheet with additional details on xAI’s Southaven data center project can be found here.
QUOTES
“This record-shattering $20 billion investment is an amazing start to what is sure to be another incredible year for economic development in Mississippi. Today, Elon Musk is bringing xAI to DeSoto County, a project that will transform the region and bring amazing opportunities to its residents for generations. This is the largest economic development project in Mississippi’s history. It sets the pace for continued high-tech investments across our state and strengthens Mississippi’s position as a leader in this exciting tech revolution. There is truly no better time to invest in Mississippi.” – Gov. Tate Reeves
54 comments:
$20 BILLION dollars - I’m imagining Dr. Evil announcing the project.
based
MACROHARDRR
now with two Hard R’s
Meanwhile, citizens, schools, and state agencies can’t afford RAM for their PCs because all mrmory production is being allocated for data centers. This has caused a shortage and two DDR5 6000 CL30 48GB DIMMs costs about $1000 when it was $200 this time last year.
It is now cheaper to just buy a Mac and pay their (formerly insane) memory upgrade prices!
Bitching commencing in 3…2…1.
“The data center, which will be known as MACROHARDRR….”
Suck Bill Gates with your “Microsoft”. Haha! I love Elon’s ‘tism humor.
Hopefully there will be some net benefit to the state, but it appears we are just the last state to get snookered.
Wow! 20 billion sounds like such a great deal!!--until you see "data center." Hardly any new jobs compared to the amount of capital invested. Even the press release says only "100s of jobs." Oooooo wooooww!! A whole OnE HuNdReD new jobs! (also emphasis on "job" and not "careers"). Think about that. A $20 billion investment, and you create about as many jobs as a couple of wal-marts?? The thing takes up a ton of space. Ain't going to be a whole bunch of new tax revenues going into our State coffers with all those "incentives." It's going to drain all our utilities. And, those things release an extremely annoying noise that drives nearby residents crazy (just google "data center noises"). Say goodbye to your home values. Seriously, how does this help the citizens of Mississippi? Tate Reeves is right that it's "record-shattering"--but not for the reasons mentioned in that press release. Build that crap out in Wyoming and stay out of our State.
Southaven is an excellent choice! If it had been Jackson all the crackheads would steal all the copper
I have previously called for AI data centers to provide their own power generation, rather than accessing it via spreading their electrical demand and cost of producing massive electrical generation on regional ratepayers.
This story reads like Musk is buying/providing his own generating capacity, a beautiful thing. As a crude corollary, imagine the governor celebrating a huge new iron foundry but requiring everyone within 100 miles to donate their skillets. This project is bringing their own skillets (electricity) hopefully.
This is a giant warehouse full of servers that require zero labor once set up. These tech firms are looking for the cheapest land with most tax breaks. The only jobs after construction will be clean up crews.
Exactly @ 5:04. Some people just don't want to be in a club that would have them as a member, but hang around on the sideline anyway.
"There is truly no better time to invest in Mississippi, just not Hinds County." (I fixed it for you Guv.)
This computer will be the world’s largest and smartest, according to xAI executives. Right here in Mississippi. And those that say “what about the water??” there is a very convenient, large ditch just 20 miles from this site, chock-full of water!
A mini-nuke power plant would be appropriate.
Lots of Christmas envelopes with this one.
Southeastern Grid Collapse dead ahead.....
Ron DeSantis has argued that the economic benefits (such as jobs) are overstated, while the downsides such as spiking utility rates and insufficient grid capacity are significant. Not enough capacity prices will spike for normal folks.
Krusatyr, Chairman Mao actually DID basically what you describe. People all over China had to donate their cooking utensils toward that great "initiative". The resulting metal was worthless, of course (and we're probably still getting it, as imports, in products where worthless metals are used as fillers).
Wondering if these data centers are kind of like landfills. Nobody else wants them but they have to be somewhere.
People in the 'sip know way better than to listen to stupid people like a Florida man!
One thing no one has mentioned is the data center smells. People nearby complain of sulfur smells permeating their homes near the data centers. They complain as if they live next to a Paper Mill.
Forget everything else - does anyone with a lick of sense REALLY think that all these tech masters-of-the-universe think that Mississippi is the new ground zero of tech, AI, and data? Forget the dollar amounts. Good, bad, or neutral, what can be stated as fact - not hyperbole, fact - about Mississippi that makes it suitable for ANY tech investment? What makes it suitable for billions and billions (alleged or actual) investment? And most importantly, assuming it is suitable, what is the real-world benefit to the citizens of Mississippi if companies do invest - billions or mere millions - in our state?
I tend to believe Ron vs Tate.
"Southaven is an excellent choice! If it had been Jackson all the crackheads would steal all the copper"
You don't get out much, do ya? Southaven is only 1 city block from Memphganistan.
Yup, just not Hinds County. Why would any major corporation invest in a total dump if they weren't first in the landfill business?
Don’t count on him bringing the power. You’re going to pay for that in the end.
When the 200-300 jobs are filled most of the employees will live across the line.
Paper Mill smell? What difference will it make? Half the car tags you spot in Southaven are Tennessee-blue already. Imagine all the Sulphur smell already permeating the town.
Most of the other states have stopped allowing data centers to be built due to the overwhelming downsides. Mississippi is pretty much all that’s left, nothing to brag about. Our politicians are too corrupt and/or stupid to tell them no. Stay last Mississippi.
Mi-cro-soft - sounds weird when you say it slow. Right?
If true, Mayor Musselwhite is finished.
all the forgine visa folks gonna get the jobs , Mississippi folks will be the security guards ... yay
So true, people will bitch about anything that might benefit this state in some way.
This is an AI oligarch dick-measuring contest. Early last month Elon was promoting the concept of AI data centers in space. He said it was the future. Then, one of Zuck’s private companies bought a nuclear power plant to lease to Meta’s next “world’s largest data center”
Well, not to be out-hyped, now Elon is going to build one in Southhaven instead of up in space? Puhleeez! Maybe if he can get Trump to fund it before Trump leaves office!
Just wait until the average power bill goes up worse than a crashed Tesla. People will be unhappy.
Auditor Shad will release a special audit finding that
that half the gigawatts consumed by AI are to make fake pictures and videos most of which are putting someone elses heads on nekkid bodies sometimes doing various extremely nasty things.
That's when the mad dads and pastors bum rush Governor Gipson's office and demand he do something.
Tate never met some pork spending that he didn't love.
Cheap land prices, cheap utilities, gullible politicians, large tax breaks, and very little regulation or oversite. That is why they choose Mississippi. If you believe anything else, you are just as gullible as Tate is. And I am a Republican. Anyone with half a brain can see what this is. AI is a fad, just like solar was. They'll come in here, make their billions and pay as little as possible with large tax breaks and leave Mississippi footing the large bill. Watch and see if what I tell you is the truth....
AI is a massive waste of resources, these datacenters are like landfills.
Haha—enjoy your power bills!
we dodged windmills for data centers
“….will create hundreds of permanent jobs throughout DeSoto County” is a bald-faced lie. Tate Reeevs thinks that you all are too dumb to fact check this load of horse dung. Kingfish certainly isn’t offering any pushback.
And I am a Republican.
Registered? How long?
Even with all the negative effects of a data center, the construction process is phenomenal for the local hospitality industry. Such a massive project requires tons of out of state workers, and you can drive around Ridgeland and count the out of state tags using the hotels and restaurants. That alone is serious revenue for a town.
landfills that are going to pay an incredible amount of money to the local city, county and importantly school districts that they are located in. I appreciate that Musk asked for $0 from the state. Just the standard exemptions that are available to everyone. He even bought his own power plant. Why are any of you rubes complaining is beyond me. Your home life must be so colorful and enjoyable if you cannot find anything positive in this.
I do think it is funny Elon declined to show up and be seen with Tater! HAHAHAHAHA
Don't like Microsoft, I haven't had a Microsoft account in 20 years. I just create a local login bypassing Microsoft account and I don't use Google.
@
9:47 And I am a Republican.
Registered? How long?
Since I could vote. And I am 43. Never missed so much as a municipal election...
These comments are wild. Ya’ll need a new hobby. Curmudgeon is a sad way to leave the world. Get off your computer and get some fresh air.
Heard that politician on the radio flat-out lying, claiming a closed-loop water system never needs changing. Absolute bullshit. Anyone with half a brain knows water has to be dumped — scaling builds up, corrodes lines, and clogs everything. If you doubt it, go drain your hot water heater and look at the sludge that comes out. These people don’t know what the hell they’re talking about. California burned through its own water, and now they’re here to plunder everyone else’s resources like the plebs are supposed to smile and thank them.
100 jobs maintaining the infrastructure that will, best case, replace 50% of all jobs, and worst case wipe out humanity.
Are you still on Windoze 10 or is there still a way to do this with Windoze 11?
Yet very short-sighted.
8:29am
Story says xAI bought a nearby power plant in Southaven. The implication is Musk will create his own power to feed this hungry enterprise and Mississipians will not be put in squirrel cage rotors to run (pay extra) for Musk's energy demands.
@10:21am - Congratulations sport
Post a Comment