The data centre, named MACROHARDRR, is under development in DeSoto County, close to Memphis, Tennessee. This will be xAI’s third data centre in the greater Memphis region. According to xAI CFO Anthony Armstrong, the facility will host “the world’s largest supercomputer” with a capacity of 2 gigawatts of computing power.
This announcement arrives amid scrutiny surrounding xAI’s data centre initiatives in the Memphis vicinity. Both the NAACP and the Southern Environmental Law Center have expressed concerns regarding air pollution linked to xAI’s supercomputer facility, which is situated near predominantly Black neighborhoods in Memphis.
A petition launched by the Safe and Sound Coalition, a local Southaven group opposing xAI’s projects, is calling for the cessation of xAI’s operations in the area and has garnered over 900 signatures as of Thursday afternoon.
xAI has not promptly responded to inquiries regarding the environmental issues raised.
A fact sheet released by the Mississippi governor’s office emphasized that environmental stewardship is a “core commitment” for xAI.
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During the announcement, Reeves expressed gratitude towards Musk. He forecasted that this investment would create hundreds of permanent jobs for the community, thousands of indirect subcontracting opportunities, and increased tax revenue to enhance public services.
As part of the data centre incentives enacted in 2024, the state plans to waive all sales, corporate income, and franchise taxes associated with the xAI project.
The savings from sales taxes on the computing power purchases by xAI could represent a significant amount, but the Mississippi Development Authority has not yet addressed The Associated Press’ inquiries about the potential tax revenue loss.
DeSoto County and the city of Southaven have also concurred to provide significantly reduced property taxes.
xAI is anticipated to commence operations at the data centre in Southaven next month.
