Elon Musk's artificial intelligence company, xAI, will make a $20 billion investment in Southaven as it expands its Mid-South presence, according to Mississippi's governor.
On Jan. 8, Gov. Tate Reeves was on hand as xAI officially announced a third Memphis-area data center, called Macrohardrr, at the former GXO Logistics building in Southaven. The 810,258-square-foot warehouse is located 2400 Stateline Road, a mile away from xAI's Colossus 2 campus at 5420 Tulane Road in Memphis' Whitehaven neighborhood.
"This is the largest economic development project in Mississippi's history," Reeves said. "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."
On Jan. 6, xAI announced it had raised an additional $20 billion in venture capital for artificial intelligence and data center expansions .
Reeves said the project would provide hundreds of jobs; however, no specifics on the total number of jobs (or number of full-time versus temporary) were provided.
The Southaven data center is expected to begin operations in February.
xAI Chief Financial Officer Anthony Armstrong said the Southaven campus will be part of xAI's growing plans to add more compute to its supercomputer cluster, but did not provide specifics on how the Southaven facility will be powered or how much compute the facility will share compared to the existing Colossus and Colossus 2 campuses in Memphis.
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Reeves said the Macrohardrr data center has been approved for state tax incentives. xAI will receive the same tax incentives that other data centers have qualified for and received in the state, he said. A sales and use-tax exemption will be applied to all computing and equipment software at the data center. Southaven Mayor Darren Musselwhite confirmed DeSoto County and the City of Southaven also have provided tax incentives.In December 2025, MZX Tech LLC, an xAI affiliate, purchased 104 acres adjacent to the former Duke Energy site at 2875 Stanton Road in Southaven. According to DeSoto County public records, the land is located in the Bob Pelts Industrial Park and the former GXO building was listed as an encumbrance in the deeds.
GXO staff are still operating out of the building. Armstrong said the logistics company will be phased out as xAI expands in the building; however, he did not provide any specifics on the timeline.
Representatives from GXO have not responded to comment regarding the facility's closing or the number of workers impacted. As of Jan. 8, no Worker Adjustment and Retraining Notification (WARN) notice has been filed in DeSoto County regarding the facility. (In January 2024, GXO filed a WARN notice in Shelby County for the closure of its 4795 Imagination Drive facility.)
xAI's presence in Southaven
With the addition of the Stateline Road facility, xAI has significantly expanded its Southaven operations. In July, MZX Tech LLC purchased the former Duke Energy site and the 114.49 acres surrounding the power plant.
Additionally, MZX Tech LLC also owns the Colossus 2 campus at Tulane Road in Memphis. (On July 27, the property ownership was transferred between a pair of xAI affiliates CTC Property LLC to MZX Tech LLC, according to the Shelby County Register of Deeds. CTC Property purchased 186.13 acres along Tulane Road in February 2025.)
On Jan. 8, 30 gas turbines could be seen outside the Colossus 2 facility. The turbines were on raised truck beds and did not look active. In May 2025, the Greater Memphis Chamber said the Colossus 2 site would not use turbines for power.
xAI did not provide information on how the new campus will be powered. Currently, the Stanton Road site has active gas turbines and was the source of noise and pollution complaints from residents at a Jan. 6 Southaven Board of Aldermen meeting.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com , 901-426-0679 or via X/Twitter: @neilStrebig .
This article originally appeared on Memphis Commercial Appeal: xAI adding Southaven data center, investing $20 billion, governor says
