Elon Musk confirmed a fourth SpaceXAI data center in Memphis with removal of previously installed illegal gas turbines underway.

Elon Musk has confirmed plans for a fourth xAI data centre in the Memphis area, further expanding the company's AI computing infrastructure.

The announcement arrives as the company removes gas turbines from its Colossus 2 data centre following a legal challenge. Campaigners filed a lawsuit against xAI and subsidiary MZX Tech in April, alleging that 27 methane gas turbines at the facility were operating in violation of the US Clean Air Act.

xAI already operates Colossus and Colossus 2 in the Memphis region, with additional capacity under development as AI computing demand grows. The latest expansion strengthens the Memphis area's role in Musk's expanding AI infrastructure network.

The data centre expansion coincides with a major semiconductor manufacturing initiative. SpaceX and Tesla recently announced a $16.8 billion initial investment in Terafab, a proposed semiconductor manufacturing complex in Grimes County, Texas. The 100 million square foot facility will integrate semiconductor manufacturing, packaging, and testing operations to support the companies' growing demand for AI computing and advanced technologies. The complex is designed to support demand exceeding 1TW of computing power and could represent substantially larger investment if fully developed. Texas officials approved a 35-year tax incentive package for the Terafab complex.

Scrutiny continues over power infrastructure supporting Musk's Memphis data centres. xAI has relied on temporary natural gas turbines to supply its computing facilities and 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.