Elon Musk’s artificial intelligence company xAI plans to invest $20 billion to build a massive data center in Southaven, Mississippi, a project Gov. Tate Reeves on Thursday described as the largest private investment in the state’s history.

The facility, known as MACROHARDRR, will be constructed in DeSoto County near Memphis, Tennessee, and will mark xAI’s third data center in the greater Memphis region. xAI Chief Financial Officer Anthony Armstrong said the cluster of centers will ultimately house what the company calls “the world’s largest supercomputer,” powered by roughly 2 gigawatts of computing capacity.

The announcement comes amid mounting scrutiny of xAI’s data center expansion in the Memphis area. Civil rights and environmental groups, including the NAACP and the Southern Environmental Law Center, have raised concerns about air pollution from xAI’s existing supercomputer facility, which sits near predominantly Black neighborhoods in Memphis.

Local opposition has also grown in Southaven. A petition circulated by the Safe and Sound Coalition, a community group opposed to xAI’s developments, is calling for the shutdown of the company’s local operations and had garnered more than 900 signatures by Thursday afternoon.

xAI did not immediately respond to requests for comment regarding the environmental concerns. However, a fact sheet released by the governor’s office said environmental responsibility is a “core commitment” for the company.

At the announcement, Reeves thanked Musk personally and said the project is expected to generate hundreds of permanent jobs, thousands of indirect subcontracting positions and significant tax revenue to support public services.

Under incentives for data centers approved by Mississippi lawmakers in 2024, the state will waive sales taxes, corporate income taxes and franchise taxes for the xAI project. The Mississippi Development Authority did not immediately say how much revenue the state would forgo, though exempting sales taxes on xAI’s computing equipment alone could represent a substantial sum. DeSoto County and the city of Southaven have also agreed to sharply reduce property taxes for the development.

xAI is expected to begin operations at the Southaven data center as early as next month.