The Greater Memphis Chamber announced that Elon Musk's artificial intelligence company, xAI, had purchased a one-million-square-foot property in Southwest Memphis, Tennessee, as the business seeks to grow its AI infrastructure in the face of growing industry rivalry.
The company previously announced intentions to extend its Colossus supercomputer to accommodate at least one million graphics processing units (GPUs) in the state in December.
This latest investment builds on that announcement.
Colossus is viewed as essential to Musk's AI goals as he seeks to outperform competitors like OpenAI after tensions between him and ChatGPT founder Sam Altman recently escalated due to the billionaire's attempt to acquire the company.
The Chamber said that the Colossus supercomputer is "well on the path to the supercluster size", as indicated in xAI's December announcement.
Environmental groups have criticized the growth of AI infrastructure since data centers use a lot of electricity.
According to the Memphis Chamber, xAI's new building has the largest deployment of Tesla Megapacks for data center operations globally, and it comes after a $80 million water recycling plant.
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It said that in order to oversee and store its Megapack energy products, Musk's Tesla will also construct a one-million-square-foot facility in Texas.