Elon Musk’s AI venture, xAI, has secured a substantial 1 million-square-foot site in Southwest Memphis to broaden its AI data center operations, as noted in a press release from the Memphis Chamber of Commerce.
The newly acquired land will support infrastructure enhancements for xAI’s current data center in Memphis.
“With the acquisition of this property, xAI is committed to staying at the forefront of AI development, right here in Memphis,” stated Brent Mayo, xAI’s senior site manager.
It remains uncertain if this new expansion is linked to a previously disclosed lease on a 522-acre parcel in Memphis.
xAI is actively seeking AI hardware. Reports suggest the company has recently established a second data center in Atlanta, investing around $700 million in chips and additional equipment. Furthermore, xAI has finalized an agreement with Dell for a $5 billion acquisition of GPU-rich servers.
xAI operates its data centers to train and implement its series of AI models known as Grok. The company aims to enhance its main facility in Memphis, dubbed Colossus, to accommodate 1 million Nvidia GPUs this year, a significant increase from last year’s 100,000.
Some local residents have voiced concerns regarding xAI’s ongoing expansion in Memphis, claiming it may overburden the power grid and deteriorate the area’s air quality. In an effort to assuage these concerns, xAI has supplied discounted Tesla batteries to the local utility and built a water recycling facility.
To support its AI infrastructure initiatives, xAI is reportedly in discussions for a $10 billion funding round, which would value the company at $75 billion. The last funding round closed in late 2024, reaching a total of $6 billion.
Compiled by Techarena.au.
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