- xAI acquires a one-million-square-foot site in Memphis for a data centre expansion.
- Plans include doubling Nvidia GPUs, boosting power supply, and introducing a water recycling plant.
What happened: AI hub expands with more compute power & sustainability
Elon Musk’s AI startup, xAI, has acquired a one-million-square-foot site in Memphis, Tennessee, to expand its colossus supercomputer cluster. The Greater Memphis Chamber announced the acquisition, reinforcing the city’s status as an emerging AI and technology hub.
Memphis already hosts xAI’s colossus site, operating 100,000 Nvidia GPUs, with plans to double capacity. Local officials indicate potential growth to over one million GPUs, aligning with Musk’s strategy to position xAI as a key competitor to Microsoft-backed OpenAI.
To support this expansion, xAI has secured approval for an $80 million water recycling facility capable of processing 13 million gallons of wastewater daily, reducing reliance on the local aquifer. The site also integrates Tesla Megapacks for energy storage, minimising grid dependency.
However, xAI has faced scrutiny over alleged unpermitted gas turbine operations. In response, affiliate CTC Property LLC filed for the necessary permits with the Shelby County Department of Health in January, following reports from environmental groups.
Brent Mayo, senior manager for site builds and infrastructure at xAI, emphasised the company’s commitment to Memphis, highlighting the expansion’s role in advancing AI research, creating jobs, and fostering regional economic growth.
Why it’s important
xAI’s colossus supercomputer expansion in Memphis marks a major move in the AI infrastructure race, doubling its Nvidia GPUs to compete with OpenAI and Google DeepMind.
The company’s $80 million water recycling plant reflects a push for sustainable AI, addressing high water and energy consumption in data centres. The use of Tesla Megapacks supports renewable energy integration.
However, regulatory concerns have emerged over unauthorised gas turbines, with xAI filing retrospective permits to comply with environmental regulations.
Memphis stands to benefit from job creation and its growing status as an AI technology hub. The long-term impact of xAI’s expansion will depend on balancing innovation with regulatory compliance.
