Multibillion dollar superproject is part of fast-growing Delta Digital hub in the Memphis MSA, including northeast Arkansas

Memphis, Tenn. – March 14, 2025 – Elon Musk is also rapidly expanding xAI’s $6 billion Colossus supercomputer in Memphis, Tenn., which is expected to benefit Crittenden County and other Arkansas communities that are part of the fast-growing Digital Delta ecosystem.

On March 7, the Greater Memphis Chamber announced it was purchasing a one-million-square-foot property in southwest Memphis to expand xAI’s existing operations and support the company’s growing presence as the Digital Delta hub, attracting other major AI tech partners such as Nvidia, Dell, and Supermicro Computer.

The xAI expansion is an investment by Musk’s transformative “Colossus” supercomputer facility, which was built in less than 121 days and began operating in July 2024. xAI’s original lease with the city of Memphis was to house the Colossus complex on a 271-acre site in the Whitehaven community, which is largely African American populated and informally known as “Blackhaven.” In October, that site was added to the 522-acre parcel of land.

“xAI’s acquisition of this property ensures we’ll remain at the forefront of AI innovation, right here in Memphis,” stated Brent Mayo from xAI. “We’re committed to expanding alongside this community and doing what’s best for the city. As we transform this property and enhance our facility, we’ll bring more employment opportunities and economic growth to the area.”

“This significant expansion by xAI reinforces Memphis’s position as a premier destination for technological innovation,” said Ted Townsend, President and CEO of the Greater Memphis Chamber. “Their investment in this million-square-foot facility, along with xAI’s collaborative partnership, demonstrates the tremendous momentum we’re building in the Digital Delta. Memphis continues to prove itself as the ideal location for companies leading the future of technology.”

xAI’s ongoing Memphis expansion will incorporate a minimum of one million Graphics Processing Units (GPUs), making it one of the largest supercomputers in the world. The site also features the world’s largest Tesla Megapack deployment for supercomputing and data center operations and plans for an $80 million water recycling plant that will process 13 million gallons of water daily to cool the Colossus.

To power the facility, the Tennessee Valley Authority approved a pact in November to supply the xAI supercomputer with 150 megawatts (MW) of electricity, enough to power 100,000 homes. At full capacity, Colossus will need 300 megawatts of electricity to power X’s Grok chatbot feature on the social media platform formerly known as Twitter.

To increase local business participation and grow the Memphis economy, xAI has also launched an RFP (Request for Proposal) Portal for companies to participate in the xAI bidding process. The portal is specifically designed to request bids from potential vendors for products or services. While the portal is open for any company to participate, xAI is strongly encouraging local companies to participate. The xAI RFP Portal can be found at https://xaivendors.com/.

“Over the past few months, I have had the privilege to meet with over 100 local (and regional) based companies. The number one question I receive is how do I do business with xAI?” said Mayo, senior manager for Site Build/Infrastructure for xAI. “The portal has been created for all companies – both small and large – to register to receive RFPs from xAI. It is important to us as a company that as we grow in Memphis, we want our fellow businesses to grow, too. This is an opportunity to work together and establish business relationships with our neighbors.”

About 250 miles south of the xAI in Memphis,  Meta announced in December that it is building a monumental $10 billion AI data center project in Richland Parish, La., calling it “a transformational investment that cements the state’s status as a major innovation hub and leader in the global digital revolution.”

The 4-million-square-foot data center, located an hour from the Arkansas state line, will be Meta’s largest AI center worldwide. Construction on the facility at the 2,250-acre site is expected to continue through 2030. Once operational, the northeast Louisiana data center will support Meta’s AI workloads and other advanced technologies, including Facebook, Messenger, Instagram, WhatsApp, and Threads.

Meta and Louisiana economic development officials are working with Entergy to bring at least 1,500 MW of new renewable energy to the grid to support the AI supercenter. Meta has pledged to match its electricity use with 100% renewable energy. However, Entergy plans to shutter its aging White Bluff and Independence coal-fired plants by the end of 2030 under a federally approved settlement agreement.

In early February, Nashville, Tenn.-based Silicon Ranch announced a new multi-year agreement with Microsoft to deploy up to 100 megawatts (MW) of renewable energy projects in the Arkansas, Mississippi and Louisiana Delta region over the next three years.

The first four solar projects in the multi-year pact with the Silicon Valley technology giant are set to break ground over the next few months. They will be operational by the end of the year in communities across Arkansas and Louisiana, officials said.

At the Arkansas legislature, state lawmakers, utility, and business officials hope passage of Senate 307 will allow Arkansas to power up as a significant electric supplier to AI super projects and data centers that are expected to drive billions of dollars of new investment in the U.S. over the next decade.

In February, Gov. Sarsh Sanders today received a report from the AI and Analytics Center of Excellence outlining recommended policies and programs to adopt artificial intelligence across Arkansas state government.

Governor Sanders launched the working group in June 2024 to study and offer recommendations for the safe use of artificial intelligence (AI) within Arkansas state government. The AI and Analytics Center of Excellence is focused on protecting data, improving government services, and preparing Arkansas for the future of artificial intelligence in government and the workforce.

“Arkansas is proactively harnessing the opportunities of artificial intelligence while ensuring its responsible use. This report outlines a vision and action plan to protect Arkansans and their data while leveraging AI to improve government efficiency, drive economic growth, and prepare our workforce for the jobs of the future. I am excited about AI’s potential to unlock the full power of data and deliver real benefits for Arkansans,” said Arkansas Chief Data Officer Robert McGough.

The report is linked here. The most significant impetus behind the discussion on AI data centers and power grid infrastructure is President Donald Trump’s executive order on Jan. 23, calling for a multi-billion dollar build-out in AI and data center capacity during his second term.

As part of the president’s action plan, the National Science Foundation issued a request for information on Feb. 6 seeking input on federal policy recommendations “to sustain America’s AI dominance.” The plan has received 268 public comments on the Federal Register docket, with the comment period set to close today (March 15).