By Emeka Blast 
xAI to Import Entire Power Plant for U.S. Data Center Housing 1M AI GPUs, Musk Reveals
Elon Musk, CEO of xAI, has confirmed that the company is purchasing an entire power plant overseas and shipping it to the United States to power a colossal new data center. The facility, designed to house one million AI GPUs, is expected to consume up to 2 gigawatts of power—equivalent to the energy needs of approximately 1.9 million homes. The announcement, first reported by SemiAnalysis and later verified by Musk via a post on X, underscores xAI’s ambitious push to lead in artificial intelligence development.
The new data center, an expansion of xAI’s existing Colossus supercomputer in Memphis, Tennessee, will significantly surpass its current capacity of 200,000 Nvidia Hopper GPUs, which already consumes around 300 megawatts. The planned million-GPU cluster is projected to require between 1.4 and 1.96 gigawatts, depending on the Nvidia Blackwell accelerators used, making it one of the most power-intensive computing facilities in the world. To meet this unprecedented demand, xAI has opted to import a natural gas combined-cycle gas turbine (CCGT) plant, as acquiring a new power plant in the U.S. would face lengthy regulatory and construction delays.
Musk’s decision to ship an overseas power plant highlights the growing challenge of securing sufficient energy for AI supercomputers. “The electrical system freaks out about these kinds of power demands,” Musk noted in a recent interview with podcaster Lex Fridman, referencing the fluctuating energy needs of AI training. The imported plant, likely capable of producing 0.5 to 1.5 gigawatts, will work alongside grid connections and Tesla Megapack battery systems to ensure a stable power supply. This move follows xAI’s existing use of 35 gas turbines at its Memphis site, which has drawn criticism from local residents and environmental groups for air quality concerns due to nitrogen oxide and formaldehyde emissions.
The Memphis expansion aligns with xAI’s rapid growth, including a recent $10 billion raise in debt and equity and the acquisition of a 186-acre site with a one-million-square-foot warehouse in South Memphis. Local officials, including Memphis Mayor Paul Young, have championed xAI’s presence, citing economic benefits like high-paying jobs and $30 million in annual tax revenue. However, the project has sparked controversy, with the NAACP and Southern Environmental Law Center threatening legal action over alleged Clean Air Act violations related to unpermitted turbines at the current Colossus facility.
Environmental concerns aside, the scale of xAI’s ambitions has drawn comparisons to other AI giants like OpenAI, which is developing a gigawatt-scale data center in Texas. Analysts warn that such massive energy demands could strain regional grids, with Memphis Light, Gas and Water (MLGW) already facing challenges after past blackouts. Despite these hurdles, xAI’s aggressive timeline aims to have the new facility operational by late 2026, potentially positioning Memphis as a global AI hub.
As xAI races to scale its infrastructure, questions remain about the sustainability of such energy-intensive projects and their impact on local communities. For now, Musk’s bold strategy of importing a power plant underscores the critical role energy plays in the AI revolution.
