Elon Musk has confirmed plans for a fourth SpaceXAI data centre in the Memphis area, adding to the company’s rapidly expanding AI computing infrastructure.
The announcement comes as the company begins removing gas turbines from its Colossus 2 data centre following a legal challenge over allegations that the units were operating without the required permits.
Campaigners filed a lawsuit against xAI and its subsidiary MZX Tech in April, alleging that 27 methane gas turbines at the facility were operating in violation of the US Clean Air Act.
The latest expansion would further strengthen the Memphis region’s role in Musk’s growing AI infrastructure network.
SpaceXAI already operates Colossus and Colossus 2 in the area, with further data centre capacity under development as demand for AI computing continues to grow.
The project also comes against the backdrop of a major expansion into semiconductor manufacturing.
SpaceX and Tesla recently announced an initial investment of $16.8bn in Terafab, a proposed semiconductor manufacturing complex in Grimes County, Texas.
The 100 million sqft facility is planned to bring together semiconductor manufacturing, packaging and testing operations, with production intended to support the companies’ growing demand for AI computing and other advanced technologies.
The complex is expected to support demand for more than 1TW of computing power and could ultimately represent a substantially larger investment if fully developed.
Texas officials also recently approved a 35-year tax incentive package for SpaceX’s proposed Terafab semiconductor manufacturing complex
For the controlled-environment sector, the announcement places the rapid expansion of AI data centres alongside growing investment in the semiconductor manufacturing infrastructure required to support them.
Meanwhile, scrutiny continues over the power infrastructure supporting Musk’s Memphis data centres.
AI has previously relied on temporary natural gas turbines to supply its computing facilities, and the company had already begun removing some turbines from its original Memphis site as additional grid infrastructure came online.
"A data center should not be a potential death sentence for a community's health,” said Abre' Conner, NAACP Director of Environmental and Climate Justice.
