xAI Expands AI Infrastructure with Major Land Acquisition in Memphis
Memphis – Elon Musk’s artificial intelligence company, xAI, has acquired a 1-million-square-foot property in southwest Memphis to expand its AI data center operations, according to a press release from the Memphis Chamber of Commerce. The acquisition is part of xAI’s broader strategy to enhance its computing infrastructure.
Brent Mayo, Senior Site Manager at xAI, stated, "This acquisition ensures that we remain at the forefront of AI innovation in Memphis."
The company recently established a second data center in Atlanta, investing $700 million in chips and other equipment. Additionally, xAI has signed a $5 billion agreement with Dell to purchase GPU servers, further strengthening its AI capabilities.
xAI utilizes its data centers for training and operating its Grok AI model. The company has announced plans to scale up the number of NVIDIA GPUs at its primary Memphis data center, "Colossus," to one million units this year.
However, concerns have been raised by local residents regarding power consumption and air pollution. In response, xAI has implemented Tesla-built battery storage solutions and constructed a water recycling facility to mitigate environmental impact.
Meanwhile, xAI is reportedly in discussions to raise a new $10 billion funding round, which could push the company's valuation to $75 billion.
