Elon Musk invests $20 billion in Mississippi as Canada scares away investors
Ezra Levant discusses why Elon Musk chose to invest $20 billion in Mississippi through his company xAI instead of in Canada, where businesses are fleeing.
On Friday's episode of The Ezra Levant Show, Ezra examined a striking economic development that highlights Canada's competitive challenges: Why has Elon Musk chosen to invest $20 billion in U.S. dollars—through his company xAI—in Mississippi, the poorest state in the United States, rather than in Canada?
On January 9th, xAI announced plans to construct a major data centre in Southaven, Mississippi, named MACROHARDRR (an apparent reference to Microsoft). This represents the largest private investment in the state's history. The project will deliver hundreds of permanent jobs, thousands of indirect positions through subcontracting, and a supercomputer cluster with 2 gigawatts of computing power. Operations are scheduled to commence next month, facilitated by the rapid execution demonstrated by xAI and Governor Tate Reeves' administration, which has prioritized reducing taxes and regulatory barriers.
BREAKING: xAI is building the world’s largest super computer in Mississippi.
— DogeDesigner (@cb_doge) January 8, 2026
xAI is making the largest private investment in state history, unveiling an 800,000 sqft Colossus 3 datacenter.
$20 billion+ project will be creating hundreds of direct jobs statewide. pic.twitter.com/JtM1GMlKtx
Mississippi is often viewed by Canadians as a stereotypical Southern state—small, with fewer than 3 million residents, and associated with historical civil rights issues as depicted in films like Mississippi Burning. On nominal GDP measures, it ranks low. However, when adjusted for Purchasing Power Parity (PPP)—accounting for lower costs of housing, food, and energy—a different picture emerges.
Analysis from The Hub indicates that Mississippi's adjusted per-capita income surpasses that of several Canadian provinces. Ontario ranks 48th when compared to U.S. states and Canadian provinces combined, while the Atlantic provinces (Prince Edward Island, Nova Scotia, and New Brunswick) fall further behind, with average equivalent incomes below $50,000 USD.
Notably, the average African American household income, adjusted for PPP, exceeds that of families in these Maritime provinces. Despite Canada's frequent emphasis on moral superiority regarding U.S. race relations, many Americans in even the poorest states enjoy a higher standard of living than residents of multiple Canadian regions.
The reasons for Musk's choice are clear.
Excited to invest in Mississippi! https://t.co/p2eu6aVVcp
— Elon Musk (@elonmusk) January 9, 2026
Canada has not attracted a comparable genuine private-sector investment of this scale in years. Past energy booms, such as in the oilsands, have been curtailed by provincial NDP and federal Liberal policies that blocked pipelines and development. In contrast, billions have been directed toward subsidized electric vehicle initiatives, even as companies like GM and Ford record substantial writedowns following the removal of the $7,500 federal EV tax credit under President Trump.
Mississippi provides advantages including industrial electricity rates approximately half those in Ontario, strategic proximity to existing xAI facilities near Memphis, competitive taxation, and expedited approvals—without the political interference seen elsewhere. Examples include past hostility in California, where union leaders criticized Musk during COVID restrictions, prompting Tesla's headquarters relocation to Texas, and domestic cases such as Ontario Premier Doug Ford's cancellation of rural internet initiatives perceived as retaliatory toward Musk.
A modest petition of 900 signatures and environmental concerns from advocacy groups have not halted the project in Mississippi, which prioritizes jobs and growth. In Canada, similar opposition—often involving environmental or racial considerations—frequently delays or derails major developments, with timelines for projects like pipelines extending to 2040 or beyond.
On paper, Mississippi may appear disadvantaged, yet it is outperforming Canada in attracting capital and fostering opportunity. This investment positions the state for further gains on PPP-adjusted rankings, while Canada risks continued stagnation despite outward displays of resilience.
BECOME A MEMBER
RebelNews+ Clips
RebelNews+ is our premium subscription service, which gives you access to our exclusive long form, TV-style shows, documentaries, members-only comments section, and the ability to read RebelNews.com without ads.
Subscribe now to get the full experience!
https://rebelnewsplus.com/
COMMENTS
-
Bernhard Jatzeck commented 2026-01-12 21:16:06 -0500Why is Musk investing his cash there? He’s spending his own money and he wants to get a good return on it. It would seem that the Canadian government flunked basic economics.
However, had he considered locating a plant for building Tesla batteries in this country….. -
Bruce Atchison commented 2026-01-12 19:27:54 -0500Liberals are deluded and they can’t understand why we don’t understand them. Conservativism conforms to reality while socialism conforms to fantasy. And no matter where socialism has been tried, it impoverishes all but the elitists at the top.
