xAI invests $20 billion in a data center in the USA - ForkLog: cryptocurrencies, AI, singularity, future

Froklog · 2026-01-10T13:14:20+00:00

Elon Musk's xAI is investing over $20 billion to expand a data center in Mississippi, marking the state's largest private investment. The facility aims to enhance xAI's capabilities amid rising demand for AI resources and energy challenges.

Froklog

2026-01-10 13:14:20

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# xAI invests $20 billion in data center in the USA

AI startup xAI of Elon Musk will invest over $20 billion in expanding a data center in Mississippi (USA). This will become the largest private investment in the state’s history, emphasized Governor Tate Reeves.

Join me as we announce a record-breaking $20 billion investment in our state.

Mississippi has momentum and THIS is our time! https://t.co/wf86VZ8snW

— Governor Tate Reeves (@tatereeves) January 8, 2026

Last year, demand for data center capacity surged amid a boom in the artificial intelligence segment. As a result, the power grids of developed countries began experiencing problems due to increased load.

On December 30, Musk announced the purchase of a data center called MACROHARDRR. Presumably, this is a humorous reference to Microsoft, as the word is an antonym of the company’s brand with RR added at the end.

The billionaire did not disclose details at the time, only clarifying that the facility would allow expanding xAI’s available capacity to 2 GW.

According to Governor Reeves, the data center is located in South Haven, near a power plant recently acquired by the startup. Operations are expected to begin as early as February this year.

In September 2024, xAI launched a ( Tennessee state) AI training cluster called Colossus in Memphis, utilizing 100,000 Nvidia H100 graphics processors. It was considered the largest in the world at that time. Environmental advocates accused the data center of worsening ecological conditions due to the use of gas turbines.

In January 2025, US President Donald Trump announced private investments of $500 billion in AI infrastructure. The initial investment of the joint venture OpenAI, Softbank, and Oracle called Stargate was planned to be $100 billion, with the amount to be expanded later. Experts doubted the initiative’s ability to attract the claimed capital volume.

Recall that the construction of the first Stargate data center complex with a capacity of 1.2 GW is expected to be completed by mid-2026. The facility will house up to 400,000 powerful AI chips from Nvidia.

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