Elon Musk’s AI company, xAI, is making big waves by investing $20 billion to build a data center in Southaven, Mississippi. Mississippi Governor Tate Reeves shared the news, calling this the largest private investment in the state’s history.
The center, named MACROHARDRR, will be located in DeSoto County, close to Memphis, Tennessee. This will be the third data center for xAI in the Memphis area. Their chief financial officer, Anthony Armstrong, hinted that this facility will host “the world’s largest supercomputer,” capable of delivering an impressive 2 gigawatts of computing power.
However, not everything is smooth sailing. There are rising concerns from local groups like the NAACP and the Southern Environmental Law Center about potential air pollution from xAI’s facilities, particularly affecting nearby Black communities in Memphis. A petition called for the closure of xAI’s operations in the area, and it’s gained over 900 signatures.
Interestingly, while xAI has claimed environmental responsibility is very important to them, the company has not publicly responded to questions about these environmental worries. Governor Reeves mentioned during the announcement that this investment could bring hundreds of permanent jobs and significant tax revenue to support local public services.
To incentivize this project, Mississippi has enacted laws that exempt data center operations from sales, corporate income, and franchise taxes. While this could mean significant savings for xAI, the exact amount of tax revenue the state might lose remains unclear.
Community opinions on social media reflect mixed feelings. Some residents are excited about new job opportunities, while others fear for the environmental impact. Experts emphasize the need for balancing economic growth with environmental sustainability.
As it stands, xAI is set to start operations in Southaven next month. This development raises questions about how technology investments can coexist with community health.
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Black experience, Air quality, Supercomputing, Artificial intelligence, Business, Information technology, Technology, Data management and storage, U.S. news, General news, Article, 129038245
