Elon Musk’s xAI has purchased a one-million-square-foot property in Southwest Memphis, strengthening its commitment to the city and expanding its role in the Digital Delta, according to a Greater Memphis Chamber press release.
This acquisition builds on xAI’s December 2024 announcement about expanding its Colossus supercomputer facility and attracting major tech partners to Memphis.
“xAI’s investment in this property keeps us at the forefront of AI innovation while creating jobs and economic growth,” said Brent Mayo of xAI.
The expansion also includes the Colossus Water Recycling Plant, an $80 million facility in Frank C. Pigeon Industrial Park that will process up to 13 million gallons of wastewater daily. Using the world’s largest ceramic bioreactor (MBR) wastewater recycling system, the plant will reduce demand on the Memphis Aquifer by 4.745 billion gallons per year, a 9% decrease in industrial water use.
Additionally, xAI’s new facility will house the largest Tesla Megapack deployment for supercomputing and data center operations. This system will allow the facility to operate without drawing power from the grid during peak demand, prioritizing energy needs for Memphis residents and businesses.
Memphis Chamber CEO Ted Townsend called xAI’s expansion a major step in making Memphis a leader in AI and technology development, solidifying the city’s role in the industry’s future.
