Mar 04, 2026 | Posted by Abdul-Rahman Oladimeji
Elon Musk’s xAI is significantly expanding its "Digital Delta" footprint. As of March 2026, the company has filed a $659 million building permit for a new 312,000-square-foot facility at 5414 Tulane Road in Memphis.
This latest development is part of an aggressive scaling strategy to push the Colossus supercluster toward a goal of 1 million GPUs.
To power its Grok AI chatbot, xAI operates a massive data center in Memphis, Tennessee. Established in 2024, this facility is located in the former Electrolux factory within the Boxtown district and houses the company’s "Colossus" supercomputer.
A third data center is in the works, located just across the state boundary in Mississippi. Musk says his company, which is now part of SpaceX, will eventually have access to 2GW of compute power from the cluster.
xAI is currently being sued by environmental campaigners over alleged unpermitted use of gas turbines at the Colossus 2 data center. The company has faced much criticism about the polluting nature of the turbines, which have been used to help get the sites up and running quickly.
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