xAI to Build Small Solar Farm Next to Colossus Data Center

Elon Musk’s artificial intelligence startup, xAI, recently disclosed to Memphis city and county planners its intention to construct a solar farm adjacent to its Colossus data center—one of the world’s largest facilities dedicated to training AI models.

The proposed solar installation will span 88 acres located west and south of the data center. The developer currently owns 136 acres of vacant land bordering the Colossus property. Given its scale, the solar farm is expected to generate approximately 30 megawatts (MW) of electricity—roughly 10% of the data center’s estimated power consumption.

xAI has drawn criticism from the Southern Environmental Law Center (SELC) for operating over 400 MW of natural gas turbines without proper permits. In collaboration with the NAACP, the legal advocacy group reported that xAI has been running at least 35 turbines, emitting more than 2,000 tons of nitrogen oxides annually. These pollutants contribute to smog formation and respiratory health issues.

The turbines have sparked significant opposition from residents of nearby Boxtown, a predominantly Black community. Researchers at the University of Tennessee, Knoxville, found that peak nitrogen oxide concentrations in areas surrounding the data center have risen by 79% since xAI began operations. Community activists have since reported a surge in asthma attacks and other breathing difficulties.

xAI has stated that it intends to use the turbines only until additional grid power becomes available. Local authorities have issued the company a permit allowing operation of up to 15 turbines through January 2027.

In September, xAI announced plans to build a 100 MW solar farm nearby, complemented by a 100 MW grid-scale battery system to ensure round-the-clock power supply.

While the company has not revealed the total project cost, developer Seven States Power Corporation has secured $439 million in funding from the U.S. Department of Agriculture, including $414 million in interest-free loans.

This federal support is particularly notable, as many clean energy grants and loan programs were eliminated during the Trump administration by the Environmental Protection Agency and the Department of Energy.

Meanwhile, xAI has expanded its use of gas turbines in Mississippi to power its second Colossus data center. Currently, 59 turbines are on-site, with the company classifying 18 of them as temporary—a designation that exempts them from regulatory pollution tracking.