xAI Plans 30MW Solar Farm for Memphis Data Center Amid Environmental Controversy

Musk's xAI to build small solar farm adjacent Colossus data center

Artificial intelligence startup xAI, founded by Elon Musk, told city and county planners in Memphis last week that it plans to build a solar farm next to its Colossus data center -- one of the world's largest facilities for training AI models. The project would occupy 88 acres to the west and south of the data center. A 136-acre vacant lot owned by the developer that also owns the Colossus property currently borders the site. Given the proposed size, the solar farm would likely produce around 30 megawatts of electricity, only about 10% of the data center's estimated power use. XAI has come under fire for operating over 400 megawatts of natural gas turbines without permits, according to the Southern Environmental Law Center (SELC). The legal organization, which is working with the NAACP, says that xAI has operated at least 35 turbines capable of emitting more than 2,000 tons of NO pollution -- nitrogen oxide emissions that contribute to smog and respiratory problems -- annually. The turbines have sparked fierce opposition from residents in nearby Boxtown, a predominantly Black community where researchers at the University of Tennessee, Knoxville, found that peak nitrogen dioxide concentration levels increased by 79% in areas immediately surrounding the data center after xAI began operations. Community activists have reported increased asthma attacks and respiratory issues since the facility opened. The AI company has said that it intends to use the turbines until it can secure additional power, but local officials gave xAI a permit to operate 15 turbines through January 2027. In September, xAI said it would build a 100-megawatt solar farm nearby, which will be paired with 100 megawatts of grid-scale batteries to provide a 24/7 source of electricity. The company hasn't disclosed the total cost of that project, but the solar farm's developer, Seven States Power Company, was awarded $439 million from the U.S. Department of Agriculture. Of that, $414 million is an interest-free loan. The federal award is notable given that many clean energy grants and loans have been canceled by the Environmental Protection Agency and the Department of Energy under the Trump administration. Meanwhile, xAI has added gas turbines in Mississippi to power its Colossus 2 data center. So far, 59 of them are onsite, and the company considers 18 of them temporary, meaning that regulators don't track their pollution.

xAI plans 30MW solar farm for Colossus in Memphis

Elon Musk's xAI notified Memphis city and county planners last week of plans to construct a solar farm adjacent to its Colossus data center, one of the largest facilities for training artificial intelligence models, to generate a portion of the site's electricity needs on a nearby vacant lot. The proposed solar farm covers 88 acres positioned to the west and south of the Colossus data center. This development sits on a 136-acre vacant lot owned by the same developer that controls the data center property. Based on the allocated acreage, the solar installation expects to produce approximately 30 megawatts of electricity. This output represents about 10 percent of the data center's overall estimated power consumption, which supports the intensive computational demands of AI model training. xAI has encountered scrutiny from environmental groups over its use of natural-gas turbines. The Southern Environmental Law Center, collaborating with the NAACP, reports that the company operates more than 400 megawatts worth of these turbines without required permits. Specifically, at least 35 turbines function on-site, each capable of emitting substantial pollutants. Collectively, these turbines release over 2,000 tons of nitrogen-oxide emissions each year. Nitrogen oxide contributes to the formation of smog and exacerbates respiratory health issues in exposed populations. Local residents in the Boxtown community, which is predominantly Black and located near the data center, have voiced strong opposition to the turbines. Researchers from the University of Tennessee, Knoxville, conducted air quality monitoring and determined that peak concentrations of nitrogen dioxide rose by 79 percent in areas directly surrounding the facility after xAI initiated operations. This elevation in pollutant levels correlates with health concerns raised by community members. Activists document a noticeable uptick in asthma attacks and other respiratory problems among residents since the data center became operational. In response to these concerns, xAI maintains that it will rely on the turbines as a temporary measure until alternative power sources become available. Local authorities issued a permit allowing the company to operate 15 of these turbines until January 2027, providing a defined timeframe for compliance and transition. Earlier efforts to address power needs include an announcement in September from xAI about constructing a larger 100-megawatt solar farm in the vicinity. This project pairs the solar array with 100 megawatts of grid-scale battery storage to deliver continuous, round-the-clock electricity supply, mitigating intermittency issues inherent in solar generation. The developer for this solar initiative, Seven States Power Corporation, secured a $439 million award from the U.S. Department of Agriculture. Within this funding, $414 million takes the form of an interest-free loan, easing the financial burden of the clean energy project. This federal support stands out amid broader policy changes, as the Environmental Protection Agency and Department of Energy under the Trump administration canceled numerous clean-energy grants and loans across the country. Parallel to activities in Memphis, xAI has expanded its infrastructure in Mississippi for the Colossus 2 data center. The company installed 59 gas turbines at this location to meet power requirements. Of these, xAI classifies 18 as temporary installations, which exempts them from standard regulatory oversight on emissions tracking and reporting.