Elon Musk’s xAI is making plans on a $659 million buildout at one of its data center cluster outside Memphis, Tennessee. It has requested a new construction permit for a 312,000 sq. ft. building at 5414 Tulane Road. The site is a 79-acre land parcel adjacent to the already existing Colossus 2 data center. Permit documents note that the four-story building to be developed will be 75 feet high.

However, there is no information on what the building is for. The documents were filed with the Memphis and Shelby County Division of Planning and Development. xAI uses its data centers in Tennessee to power its Grok AI chatbot. The firm set camp in Memphisin 2024 as it launched its Colossus supercomputer in a new data center housed in a former Electrolux factory in Memphis’s Boxtown district.

Moreover, it purchased the site for Colossus 2 last March, and the data center came online in January. However, Musk’s claims that it offered 1GW of capacity at launch were quickly debunked. Satellite imagery taken in January reportedly showed it had cooling equipment installed capable of managing 350MW. Data center projects across the United States seem  to be ramping up as adjacent state, Georgia seeks to implement $5bn+ Project Ruby in Columbus.

Outlook on the xAI Memphis Data Center Cluster Buildout

Other than the xAI data center cluster buildout in Memphis, there are others in the works that will support Grok. A third data center is in the works, located just across the state boundary in Mississippi. It is located in Southhaven, DeSoto County and is known as MACROHARDRR. The name is an apparent dig at Microsoft. Once complete, it will supply compute power for the company’s Colossus supercomputer.

Nonetheless, Musk says his company, which is now part of SpaceX, will eventually have access to 2GW of compute power from the Memphis cluster. Despite the buildout successes, the company is also facing some setbacks. xAI is currently being sued by environmental campaigners over alleged unpermitted use of gas turbines at the Colossus 2 data center. The firm has faced much criticism about the polluting nature of the turbines, which have been used to get the sites up and running quickly.

Project Factsheet:

• Project Name: xAI Memphis Data Center Cluster Buildout
• Location: Memphis, Tennessee, United States
• Estimated Investment Value: $659 Million
• Type: AI data center expansion supporting Grok supercomputing infrastructure

Timeline

• 2024: xAI establishes Memphis operations.
• 2024: Launch of Colossus supercomputer at former Electrolux facility.
• March 2025: Land acquired for Colossus 2 data center.
• January 2026: Colossus 2 facility comes online.
• 2026: Construction permit filed for new 312,000 sq. ft. building.

Site & Scale

• Site Area: 79-acre campus.
• New Building Size: 312,000 sq. ft.
• Building Height: Four stories, also about 75 feet.
• Campus Infrastructure: Adjacent to the Colossus 2 data center.
• Estimated Compute Capacity: About 350MW currently installed cooling capacity.

Key Developers / Authorities / Partners

• xAI – Project developer and AI operator.
• Elon Musk – Founder and owner of xAI.
• Memphis and Shelby County Division of Planning and Development – Construction permit authority.
• SpaceX – Parent company associated with xAI operations.

Strategic Objectives

• Expand compute power for the Grok AI platform.
• Also support Colossus supercomputer infrastructure.
• Build large-scale AI compute hub in Tennessee.
• Furthermore, it will increase long-term cluster capacity to 2GW.

Related Projects

• Colossus Data Center: Located in Memphis’ Boxtown district in a former Electrolux factory.
• Also Clossus 2 Data Center: Adjacent facility supporting the AI cluster.
• MACROHARDRR Data Center: Planned facility in Southaven, Mississippi

Current Status

• Permit request submitted for new building at 5414 Tulane Road.
• Colossus 2 data center operational.
• Additional regional data center also under development in Mississippi.
• Environmental lawsuit filed over gas turbine use at Colossus 2.