xAI plans $20 billion data centre investment in Mississippi

Local authorities confirmed incentive approvals for the $20 billion xAI data centre project scheduled to begin operations in early 2026.
xAI announced plans to invest more than $20 billion in a new data centre in Southaven, Mississippi, expanding computing capacity and supporting long term regional employment.

The US AI company, xAI, plans to establish a large-scale data centre in Southaven, Mississippi, representing an investment of more than $20 billion. The project is expected to create several hundred permanent jobs across DeSoto County.

xAI has acquired an existing facility that will be refurbished to support data centre operations, located near additional energy and computing infrastructure already linked to xAI.

Once operational, the Southaven site in the US is expected to expand the company’s overall computing capacity significantly.

State and local authorities approved incentive measures for the project, including tax exemptions available to certified data centres.

Officials indicated that the investment is expected to contribute to local tax revenues supporting public services and infrastructure, while operations are scheduled to begin in February 2026.

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