Elon Musk confirms fourth SpaceX-backed xAI datacenter facility in Memphis, Tennessee.

Elon Musk has confirmed plans for a fourth SpaceXAI data centre in the Memphis area, marking another expansion of the company's AI computing infrastructure. The announcement follows a legal challenge that forced the company to begin removing gas turbines from its Colossus 2 facility.

In April, campaigners filed a lawsuit against xAI and its subsidiary MZX Tech, alleging that 27 methane gas turbines at the data centre were operating without the required permits and in violation of the US Clean Air Act. The removals have since commenced in response to the legal pressure.

SpaceXAI already operates Colossus and Colossus 2 in the Memphis region, with additional data centre capacity under development to meet rising demand for AI computing. The fourth facility would further cement the area's position as a key hub in Musk's AI infrastructure network.

This expansion occurs alongside a significant push into semiconductor manufacturing. SpaceX and Tesla recently announced an initial $16.8 billion investment in Terafab, a proposed semiconductor complex in Grimes County, Texas. The 100 million square foot facility would integrate manufacturing, packaging, and testing operations designed to support the companies' growing demand for AI computing and advanced technologies. Officials estimate the complex could support demand for more than 1 terawatt of computing power, with potential for substantially larger investment if fully developed. Texas has approved a 35-year tax incentive package for the project.

Power infrastructure remains a focal point of scrutiny around Memphis operations. xAI has historically relied on temporary natural gas turbines to supply its computing facilities and had already begun removing units from its original Memphis site as grid infrastructure expanded.

"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.