Elon Musk has confirmed that SpaceXAI is constructing a fourth data center in Memphis, Tennessee, as the company simultaneously agrees to remove 69 portable gas turbines that have drawn criticism from environmental and civil rights advocates. The new facility, dubbed "Minihard," will house 220,000 GB300 processors with advanced networking capabilities, expanding the infrastructure that powers Grok, xAI's artificial intelligence chatbot.

Why Is SpaceXAI Removing Gas Turbines From Its Memphis Operations?

The removal of the temporary turbines stems from legal pressure and environmental concerns. In April, the NAACP filed a complaint against xAI and its subsidiary MZX Tech, alleging that 27 methane gas turbines powering the Colossus 2 data center were operating illegally in violation of the Clean Air Act. Campaigners launched legal action claiming the turbines were installed without proper permits and violated federal environmental regulations.

SpaceXAI has now entered into an agreed order with the Mississippi Department of Environmental Quality to remove all 69 temporary, mobile turbines over the next year, beginning next month. The company stated it "care[s] deeply about being good neighbors and regularly reconfigure[s] power operations to reduce noise from the facility and minimize our impact on the local community".

What Does This Expansion Mean for xAI's Computing Power?

The new Minihard facility represents a significant scaling of xAI's computational infrastructure. According to Musk's response to a user on X, the new data center will feature the same configuration as the existing Macroharder facility, housing 220,000 GB300 processors with 800-gigabit network interface cards in a denser arrangement. The four-story building spans 312,000 square feet and cost approximately $659 million to construct.

However, powering this expansion poses challenges. The additional 220,000 GB300 processors would likely require more than 400 megawatts of computing power, yet satellite imagery from January suggested SpaceXAI's cooling equipment could only manage 350 megawatts across all Memphis facilities. SpaceXAI claims to have 1 gigawatt of compute power across its Memphis data centers, though independent verification remains unclear.

How Is SpaceXAI Planning to Replace Temporary Power With Permanent Infrastructure?

• Permanent Power Plant: A 1.2-gigawatt permanent power plant received permitting approval in March and will replace the temporary turbines, though it will comprise 41 gas turbines itself.
• Removal Timeline: All 69 temporary, mobile turbines will be removed over the next year, with removal beginning next month, according to the agreed order with Mississippi environmental regulators.
• Ongoing Operations: The company regularly reconfigures power operations to reduce noise and minimize community impact while maintaining data center functionality.

The transition from temporary to permanent power infrastructure reflects xAI's rapid scaling challenges. When xAI began building data centers in Memphis in 2024 to house Colossus, the supercomputer powering Grok, the company used portable natural gas turbines to accelerate deployment. While this approach enabled fast capacity expansion, it generated significant environmental and health concerns in some of Memphis's lower-income neighborhoods.

What Is the Broader Context of xAI's Data Center Expansion?

xAI's Memphis operations have expanded dramatically since the company was rolled into SpaceX, becoming SpaceXAI and diversifying into neocloud services. The company now rents data center space to clients including Anthropic, a major artificial intelligence research company. Beyond Memphis, SpaceXAI is reportedly considering building a campus in Texas, signaling continued aggressive expansion of its computing infrastructure.

Musk's naming of the existing data centers as "Macrohard" and "Macroharder" appears to be a playful jab at Microsoft, reflecting the competitive dynamics in the artificial intelligence infrastructure market. The rapid buildout of Colossus and its successor facilities underscores the enormous computational demands of training and running large language models, the AI systems that power chatbots like Grok.

The Memphis expansion also highlights the tension between rapid AI infrastructure deployment and environmental responsibility. While SpaceXAI's agreement to remove the temporary turbines addresses immediate legal and regulatory concerns, the permanent 1.2-gigawatt power plant will still rely on 41 gas turbines, meaning neighbors may see limited improvement in air quality despite the company's stated commitment to being a good neighbor.