Elon Musk’s AI company xAI has confirmed it is set to build a third data center in Mississippi, and will invest more than $20 billion in the state.

First revealed by Musk in a post on his X social media network last month, the data center in Southhaven, DeSoto County, which will be known as MACROHARDRR – an apparent dig at Microsoft – will supply compute power for the company’s Colossus supercomputer.

Once fully built-out, the data center, along with another existing site in Southaven and a campus in nearby Memphis, will apparently give xAI access to 2GW of compute power.

The project was confirmed by officials in Mississippi on Thursday.

State governor Tate Reeves said: “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.”

xAI has bought an existing building, which will be retrofitted to host the data center. It has not been revealed how many GPUs will be installed at the facility, but the company has previously said it is targeted a cluster of one million AI chips to run Colossus.

The Mississippi Development Authority said it had 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.

“Starting off 2026 with a $20 billion investment by xAI is a clear sign Mississippi is not letting up on the economic momentum we have built over the last few years,” said Bill Cork, Mississippi Development Authority’s executive director. “Our focus on speed, certainty and readiness allows companies to move quickly and with confidence, while also enabling Mississippi to compete for capital-intensive, advanced technology projects like xAI. These investments bring new, high-quality jobs to the people of Mississippi and place our state at the center of the ‘Digital Delta.’ We are proud to partner with the xAI team as we continue building the future of tech innovation right here in Mississippi.”

It’s been a busy week for xAI, which on Tuesday announced it has raised $20 billion in a Series E funding round. The cash will presumably be poured straight into the Southaven project.

Musk’s firm, which makes the Grok chatbot, is also renting data center equipment from a company set up by Valor Equity Partners, which has raised $5.4 billion to purchase Nvidia chips and other hardware on behalf of xAI.

The new data center is expected to be up and running next month.

“xAI is scaling at an immeasurable pace - we are building our third massive data center in the greater Memphis area,” Musk said. “MACROHARDRR pushes our Colossus training compute to ~2GW – by far the most powerful AI system on Earth. This is insane execution speed by xAI and the state of Mississippi. We are grateful to Governor Reeves for his support of building xAI at warp speed.”