xAI Approved for $20M Building in Whitehaven

New commercial office building will be the sixth phase of construction for Elon Musk's AI company.

Apr. 17, 2026 at 10:25am

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A glowing, futuristic 3D illustration of a large, angular office building with pulsing neon-blue and magenta lights, representing the advanced technology and infrastructure of xAI's new facility in Memphis.xAI's new $20 million office building in Whitehaven will expand the company's high-tech footprint in the Memphis region.Memphis Today

Elon Musk's xAI has received approval for a $20 million construction permit to build a new 300,000-square-foot commercial office building on its Colossus Two campus in the Whitehaven neighborhood of Memphis, Tennessee. The four-story, pre-engineered metal building will be located next to xAI's existing Colossus Two supercomputer site and data center.

Why it matters

xAI's continued expansion in the Memphis area demonstrates the company's commitment to the region and its growing presence in the artificial intelligence industry. However, the decision to pause the water recycling project has raised some concerns from local environmental groups about the company's environmental impact.

The details

The new building will be the sixth phase of construction for xAI's Colossus Two campus. The permit was approved earlier this week, and the building is zoned for commercial office use. While xAI had previously announced plans for a water recycling project to cool its Colossus supercomputer and conserve 5 billion gallons of water annually, the company has now put that project on hold until the current construction is completed.

  • The $20 million construction permit was approved earlier this week.
  • xAI recently announced it would be putting its water recycling project on hold until construction at Colossus Two is completed.

The players

xAI

Elon Musk's artificial intelligence company that is expanding its presence in the Memphis area.

Protect Our Aquifer

A local environmental group that was excited about xAI's water recycling project and is now concerned about the company's decision to put it on hold.

Scott Schoefernacker

The science director of Protect Our Aquifer, who expressed disappointment in xAI's decision to pause the water recycling project.

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What they’re saying

“We were very excited about the project. We supported the project. Whatever your feelings are about xAI, this was something that was very good for the aquifer system.”

— Scott Schoefernacker, Science Director, Protect Our Aquifer

“Put your money where your mouth is and finish the job.”

— Scott Schoefernacker, Science Director, Protect Our Aquifer

What’s next

xAI says it remains committed to the water recycling project, but it is currently prioritizing other, more immediate projects at the Colossus Two site.

The takeaway

While xAI's continued expansion in Memphis is a positive sign for the local economy, the company's decision to pause its water recycling initiative has raised concerns about its environmental impact. As xAI grows its presence in the region, it will need to balance its business interests with the needs of the local community and environment.