Environmental opposition
The announcement arrived as xAI faces scrutiny over its existing Memphis-area facilities. The NAACP and the Southern Environmental Law Center have raised concerns over air pollution generated by xAI’s supercomputer facility near predominantly Black communities in Memphis.
A petition by the Safe and Sound Coalition, a Southaven group opposing xAI’s developments in the region, called for shutting down xAI’s operations in the area and had received more than 900 signatures as of Thursday afternoon.
xAI did not immediately respond to questions about the environmental concerns. A fact sheet released by the Mississippi governor’s office stated that environmental responsibility is a “core commitment” for xAI.
Tax incentives and economic projections
To secure the investment, Mississippi will waive all sales, corporate income, and franchise taxes on the xAI development under an incentive law for data centers passed in 2024. The Mississippi Development Authority did not immediately respond to questions about how much tax revenue Mississippi would forgo. DeSoto County and the city of Southaven also agreed to substantially reduced property taxes.
Reeves predicted the project would bring hundreds of permanent jobs and thousands of indirect subcontracting jobs to the community, along with tax revenue to support public services. xAI is expected to begin data center operations in Southaven next month.