Musk Invests Billions in New AI Data Center
In Memphis, Tennessee, a massive AI data center is being built by Elon Musk’s company xAI. The new facility is expected to rival an existing 114-acre center located nearby.
According to The Wall Street Journal (WSJ), construction of the facility is nearing completion. Musk claims that the new site will house over 500,000 graphics processing units (GPUs) for artificial intelligence. The project has been named “Colossus 2”, after its predecessor located just across the road.
Sources told WSJ that to complete the facility, about 300,000 more Nvidia GPUs are still needed, which will cost at least $18 billion, excluding the already installed chips and massive construction costs.
The first center, “Colossus”, was built in record time. To bypass local environmental regulations and accelerate operations, Musk temporarily powered it using methane generators. Later, he purchased a nearby power station to meet the center's massive energy needs — a step he may need to repeat for Colossus 2.
“In just one year, xAI became the second-largest taxpayer in Memphis and Shelby County after FedEx,” said Bill Dunavant, a local Chamber of Commerce representative, to WSJ.
However, the Natural Resources Defense Council (NRDC) warns that the new center may become one of the region's largest sources of pollution. Locals are already facing power outages, rising utility bills, and increased air pollution.
