Elon Musk’s xAI will further expand its Memphis operations with the purchase of a 1 million-square-foot facility in Whitehaven, the Greater Memphis Chamber announced on Friday.
The acquisition builds on xAI’s December 2024 announcement regarding the expansion of its Colossus supercomputer facility and the attraction of major tech partners. The facility at the former Electrolux building in Southwest Memphis, which opened last year, powers “Grok,” the company’s artificial intelligence system.
“xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis,” stated Brent Mayo from xAI. “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.”
The expansion announcement follows news of an $80 million water recycling facility to be in Frank C. Pidgeon Industrial Park. The facility will process up to 13 million gallons of wastewater daily, eliminating the need to draw from the Memphis Sand Aquifer for industrial use. This facility is expected to save about 4.7 billion gallons of water in the aquifer annually, a 9 percent reduction in demand as it will serve other major industrial users in the region.
The new facility also features the world’s largest Tesla Megapack system, designed specifically for supercomputing and data center operations, ensuring the facility won’t draw from the grid during demand response periods, prioritizing the energy needs of Memphis residents and surrounding communities, according to the Chamber.
The price tag of the investment on the new facility was not given by the Chamber.