xAI commits $20B to 2GW Mississippi AI data center: global hub

xAI will invest more than $20 billion to build a 2-gigawatt (GW) AI data-center campus in Southaven, Mississippi. Multiple outlets report the project size, location, and timetable (Reuters; Associated Press; Washington Post). xAI plans to begin operations in February 2026. The campus would rank among the largest single-site AI compute installations in the U.S. and will require substantial dedicated power and cooling infrastructure (Reuters; AP).

The 2 GW figure denotes total campus electrical capacity. That capacity is sized to support high-density GPU and accelerator clusters used for large-model training and inference. Business Insider reported that xAI closed an approximately $20 billion funding round to finance expanded AI infrastructure; that funding detail appears only in that report and is not an official company announcement (Business Insider).

Expected impacts include regional grid strain, accelerated demand for GPUs and networking equipment, and competition for specialized data-center labor. Enterprises and cloud partners should plan multi-quarter procurement and interconnect timelines if they intend to colocate or partner with the campus.

Why It Matters

• Plan for power and networking: a 2 GW campus requires multi-megawatt feeds and likely multi-quarter lead times for substation and fiber upgrades — engage utilities and carriers early.
• Assess compute access: decide whether to colocate, secure high-bandwidth interconnects, or pursue model-sharing to leverage on-site large-model training capacity.
• Anticipate supply-chain pressure: expect longer lead times and price volatility for GPUs, switches, and specialized data-center services; accelerate procurement and vendor commitments.