Elon Musk's artificial intelligence startup, xAI, has informed Memphis city and county planners of its intention to build a solar farm next to its Colossus data center. This facility is recognized as one of the world's largest for training AI models.
The proposed solar farm would span 88 acres to the west and south of the data center. While a step towards renewable energy, the project is estimated to produce approximately 30 megawatts of electricity, which would cover only about 10% of the Colossus data center's substantial estimated power use.
This development unfolds amidst significant environmental scrutiny. xAI has faced criticism for operating over 400 megawatts of natural gas turbines without proper permits, according to the Southern Environmental Law Center (SELC). The legal organization, collaborating with the NAACP, states that xAI has operated at least 35 turbines capable of emitting more than 2,000 tons of NOX pollution annually. These nitrogen oxide emissions contribute to smog and respiratory problems.
The turbines have sparked fierce opposition from residents in nearby Boxtown, a predominantly Black community. 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 a rise in asthma attacks and respiratory issues since the facility opened. While xAI stated its intent to use the turbines until it secures additional power, local officials only granted a permit to operate 15 turbines through January 2027.
The current smaller solar farm proposal follows a previous announcement by xAI in September, detailing plans for a larger 100-megawatt solar farm nearby. This larger project is intended to be paired with 100 megawatts of grid-scale batteries to provide a continuous 24/7 electricity source.
Although xAI has not disclosed the total cost of the larger project, its developer, Seven States Power Corporation, was awarded $439 million from the U.S. Department of Agriculture, including a $414 million interest-free loan. This federal award is particularly 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.
Adding to the company's energy footprint, xAI has also installed gas turbines in Mississippi to power its Colossus 2 data center. Currently, 59 turbines are on-site, with 18 classified as temporary, meaning regulators do not track their pollution emissions. This raises similar concerns among local residents regarding noise and air quality.
