Elon Musk's xAI has secured a massive property deal in Southwest Memphis, expanding its footprint in the region with the acquisition of a 1 million square feet development. The purchase, valued at nearly $80 million, includes the Stateline North development, comprising three sites at 5408, 5414, and 5420 Tulane Road, as reported by Memphis Business Journal.
The acquired property is set to be the breeding ground for the "Colossus" supercomputer facility's expansion as noted by Action News 5. The facility will include over one million Graphics Processing Units (GPUs) and is expected to be operational by 2026. A collaboration with tech giants such as Nvidia, Dell, and Supermicro Computer (SMC) is also on the horizon, though the specific sites for these partnerships remain undisclosed.
The expansion plans coincide with the establishment of the Colossus Water Recycling Plant. According to information by Action News 5, the plant will utilize treated wastewater from the city's nearby facility, converting it into a cooling system for the supercomputer – an integral element in assuring the sustainability of the project. With these plans in motion, Ted Townsend, President and CEO of the Greater Memphis Chamber, highlighted xAI's role in affirming Memphis as a leading ground for technological innovation.
Brent Mayo from xAI emphasized the company's commitment to the region, telling WREG News, "xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis," he added, "We’re committed to expanding alongside this community and doing what’s best for the city. As we transform this property and enhance our facility, we’ll bring more employment opportunities and economic growth to the area."
