xAI has purchased a one-million-square-foot property in Southwest Memphis to dramatically expand its AI infrastructure footprint. The acquisition, located near the TVA Southaven Natural Gas Plant, marks a significant scaling of the company’s Colossus supercomputer project.
According to statements from company officials, the expansion will incorporate at least one million GPUs and is scheduled for completion by 2026, though industry watchers suggest the timeline might be accelerated.
“xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis,” said xAI senior site manager Brent Mayo in a statement.
The purchase strengthens Memphis’s emerging position as a technology hub. Ted Townsend, President and CEO of the Greater Memphis Chamber, emphasized the significance of the investment: “This significant expansion by xAI reinforces Memphis’s position as a premier destination for technological innovation. Their investment in this million-square-foot facility, along with xAI’s collaborative partnership, demonstrates the tremendous momentum we’re building in the Digital Delta.”
It remains unclear whether this expansion connects to xAI’s previously announced lease of a 522-acre site in the same city, suggesting the company’s ambitions in the region may be even broader than initially reported.
xAI’s appetite for computing resources appears insatiable. Reports indicate the company recently constructed a second data center in Atlanta, investing approximately $700 million in chips and equipment. Additionally, xAI has secured a $5 billion deal with Dell for GPU-equipped servers.
The company utilizes these massive data centers to train and operate its Grok AI models. xAI has announced plans to upgrade its primary Memphis-based Colossus facility from 100k Nvidia GPUs last year to an impressive one million GPUs by the end of 2025.
Not all Memphis residents have welcomed xAI’s continued expansion. Critics argue the growth will put pressure on the local power grid and potentially impact air quality. In response, xAI has implemented several community-focused initiatives, including providing discounted Tesla-manufactured batteries to local utilities and building a water recycling plant near its existing facility.
These efforts align with the completion of xAI’s Colossus Gray Water Recycling Plant, which operates in proximity to the current facility.
The expansion follows xAI’s substantial funding round in late 2024, which secured $6 billion for the company’s ambitious AI projects. As xAI continues its rapid growth trajectory, Memphis finds itself increasingly at the center of America’s AI revolution.
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