Recently, Mississippi Governor Tate Reeves released a statement announcing that Elon Musk's artificial intelligence startup xAI will invest over $20 billion in the city of Southaven, Mississippi, to build a new data center. This move reflects the current boom in generative AI and the surge in demand for computing power.

As many tech giants and AI companies plan to invest billions of dollars to expand their infrastructure, the focus on data centers has been increasing. xAI's investment aims to enhance its competitiveness in the AI field, particularly in direct competition with industry leaders such as OpenAI's ChatGPT and Anthropic's Claude.

According to the governor's statement, xAI is expected to start operating the new data center in February 2026. Notably, Musk acquired a data center called MACROHARDRR on December 30th last year, and he stated that this facility would bring xAI's computing power to 2 gigawatts. However, specific investment details and location information were not disclosed.

The new data center will be adjacent to xAI's newly acquired power plant and close to the company's existing data center in Memphis, Tennessee. The Memphis data center houses xAI's supercomputer cluster Colossus, which is considered one of the largest supercomputer clusters in the world.

According to a report by Bloomberg, xAI's cash spending in the first nine months of this year has reached $7.8 billion, and AI startups usually require substantial funds to purchase expensive high-end data center hardware. This expansion will provide the necessary infrastructure support for xAI's future development to meet the growing market demand.

Key Points:

🌟 xAI will invest more than $20 billion in Mississippi to build a new data center, aiming to enhance computing power.

📈 The data center is expected to start operations in February 2026, adjacent to a newly acquired power plant.

💰 xAI's cash spending in the first nine months of this year has already reached $7.8 billion, showing its strong demand for infrastructure.