Elon Musk’s xAI is investing over $20 billion in a data center in Southaven, Mississippi, to meet the demand for increased computing power in generative AI. Interest in data centers surged last year with tech giants investing billions in infrastructure. xAI plans to start operations in February 2026. Musk announced the purchase of the data center, named “MACROHARDRR,” on December 30, aiming to boost xAI’s compute power to 2GW. The data center is near xAI’s power plant site in Southaven and its existing data center in Memphis, Tennessee. Memphis is home to xAI’s supercomputer cluster, Colossus, the largest in the world. xAI has already spent $7.8 billion in cash this year, a common trend among AI startups investing in data center hardware.

Read more at Yahoo Finance: Musk’s xAI to invest over $20 billion in Mississippi data center