Musk’s xAI Plans Small Solar Farm Next to Colossus Data Center

Elon Musk's AI startup, xAI, has informed Memphis city and county planners that it intends to build a solar farm adjacent to its Colossus data centre, one of the world's most extensive AI training facilities.

The proposed project would cover 88 acres to the west and south of the data centre. A 136-acre vacant lot owned by the same developer currently borders the site. The solar farm is expected to generate roughly 30 megawatts of electricity, which would cover only about 10% of the data centre's estimated energy needs.

xAI has faced criticism for operating more than 400 megawatts of natural gas turbines without proper permits, according to the Southern Environmental Law Centre (SELC). Working with the NAACP, the organisation says at least 35 turbines could emit over 2,000 tons of nitrogen oxide (NOx) annually — pollutants linked to smog and respiratory issues.

Residents of Boxtown, a predominantly Black community near the site, have expressed concerns about health impacts. Research from the University of Tennessee, Knoxville, indicates that peak nitrogen dioxide levels in areas around the data centre rose by 79% after xAI began operations, with local activists reporting higher rates of asthma and other respiratory problems.

xAI has stated it will continue using the turbines until additional power sources are secured. Local officials have granted a permit for 15 turbines to operate through January 2027.

In September, xAI also announced plans for a 100-megawatt solar farm, paired with 100 megawatts of grid-scale batteries to ensure a 24/7 electricity supply. While the total cost of that project hasn't been disclosed, Seven States Power Corporation, the solar farm developer, received $439 million from the U.S. Department of Agriculture, including $414 million in interest-free loans.

The federal funding is notable, as many clean energy grants and loans were previously cancelled by the Environmental Protection Agency and Department of Energy under the Trump administration.

Meanwhile, xAI continues to expand its Colossus 2 datacenter in Mississippi, where 59 gas turbines have been installed. The company considers 18 of these temporary, meaning regulators do not track their emissions.