Artificial intelligence startup xAI, founded by Elon Musk, has unveiled plans to build a solar farm next to its Colossus data center in Memphis — one of the world’s largest facilities for training AI models.
The proposed project would span 88 acres to the west and south of the data center, bordered by a 136-acre vacant lot owned by the same developer. The solar farm is expected to generate around 30 megawatts of electricity, roughly 10% of the data center’s estimated power usage.
xAI has faced criticism for operating over 400 megawatts of natural gas turbines without proper permits, according to the Southern Environmental Law Center (SELC), which is working alongside the NAACP. The group claims at least 35 turbines are capable of emitting more than 2,000 tons of nitrogen oxide (NOX) annually — pollutants that contribute to smog and respiratory health problems.
The turbines have sparked opposition from residents in Boxtown, a predominantly Black community near the facility. Researchers at the University of Tennessee, Knoxville, found that peak nitrogen dioxide concentrations increased by 79% in areas surrounding the data center after xAI began operations. Community activists report increased asthma attacks and other respiratory issues.
xAI maintains that the turbines are a temporary measure until additional power can be secured. Local officials have granted permits for 15 turbines to operate through January 2027.
In September, xAI announced plans for a larger 100-megawatt solar farm, paired with 100 megawatts of grid-scale batteries to provide round-the-clock electricity. The solar project’s developer, Seven States Power Corporation, received $439 million from the U.S. Department of Agriculture, including a $414 million interest-free loan. This federal award is notable amid broader reductions in clean energy grants and loans under the Trump administration.
Meanwhile, xAI is expanding its natural gas operations in Mississippi to power its Colossus 2 data center, with 59 turbines currently on-site. Of these, 18 are classified as temporary, meaning regulators do not track their pollution output.