Artificial intelligence startup xAI, founded by Elon Musk, told Memphis planners last week that it intends to build an 88-acre solar farm adjacent to its Colossus data center — one of the world’s largest facilities for training AI models. The installation would likely generate around 30 megawatts of power, only about 10% of the data center’s estimated electricity needs.
The announcement arrives as xAI faces mounting criticism for operating more than 400 megawatts of natural gas turbines without proper permits, according to the Southern Environmental Law Center (SELC). SELC and the NAACP say at least 35 of those turbines emit more than 2,000 tons of nitrogen oxides annually, contributing to smog and respiratory problems.
Residents of Boxtown — a predominantly Black neighborhood bordering the site — have reported increased asthma attacks since the data center began operations. A University of Tennessee, Knoxville study found that peak nitrogen dioxide levels surged 79% in the surrounding area. While local officials granted xAI permits to run 15 turbines through January 2027, dozens more remain in operation.
xAI has said the gas turbines are temporary until more power can be secured. In September, the company announced a separate 100-megawatt solar farm paired with 100 megawatts of grid-scale batteries. Developer Seven States Power Corporation received $439 million from the U.S. Department of Agriculture for that project, including $414 million in interest-free loans — notable at a time when many federal clean-energy programs have been rolled back under the Trump administration.
The company is also expanding beyond Tennessee: xAI has added 59 gas turbines at its Colossus 2 site in Mississippi, 18 of which it classifies as “temporary,” meaning their emissions are not tracked by regulators.
The solar farm plan comes amid a broader acceleration of xAI’s infrastructure buildout. The company is simultaneously pursuing a 500-megawatt data center project in Saudi Arabia, part of a growing international footprint, and recently raised $15 billion at a $230 billion valuation, underscoring investor confidence in its AI ambitions.
