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- Elon Musk’s xAI purchased a 114.49-acre property in Southaven for a reported $10.
- This purchase follows xAI’s acquisition of a large property on Tulane Road in Memphis for $79.9 million earlier this year.
xAI is expanding its Mid-South footprint.
On July 16, MZX Tech LLC, an affiliate of the artificial intelligence company, purchased 114.49 acres in Southaven. The property is located at 2875 Stanton Road, according to DeSoto County public records.
The former Duke Energy site is about 1.5 miles from xAI’s Colossus 2 campus at 5420 Tulane Road in Memphis.
MZX Tech is a Wyoming-based LLC, however, the company’s address is listed at 1450 Page Mill Road in Palo Alto, California. The same address is listed by xAI affiliate CTC Property LLC on the company’s deed for 5420 Tulane Road and its Colossus 2 site.
Additionally, xAI chief financial officer Michael Liberatore is listed as a representative for MZX Tech LLC, according to DeSoto County public records for transmission line agreements. The utility line agreements are dated between June 23 and June 26, according to DeSoto County public records.
xAI did not immediately return a request for comment regarding the Southaven property.
The Stanton Road property includes several utility easements with transmission lines connecting to Mississippi Power and Light, along with Texas Gas lines. Texas Gas Transmission LLC, is a subsidiary of Boardwalk Pipeline. The company’s gas lines connect to the nearby Tennessee Valley Authority (TVA) Southaven Combined Cycle Plant. The utility easements include a 200-megawatt connection.
The Stanton Road property deed listed a $10 purchase price. The seller, Julie James, could not be reached for comment regarding the property sale.
On July 16, MZX Tech agreed to a lease agreement with the original property owners to construct a transmission line. The lease is between MZX Tech and a subsidiary called Stanton Road Peak Properties LLC, according to DeSoto County records.
In February, CTC Property purchased 186.13 acres along Tulane Road for $79.9 million, according to the Shelby County Register of Deeds. The purchase includes three parcels listed at 5408, 5414 and 5420 Tulane Road.
In May, xAI owner Elon Musk called Colossus 2 the “first gigawatt AI training supercluster.” The xAI campus is expected to require at least a gigawatt of electricity to power its supercomputer. However, how xAI plans to power the facility remains unclear.
On July 15, xAI senior manager for infrastructure Brent Mayo did not go into specifics regarding the Tulane Road site, but said the company is working with Memphis Light, Gas and Water (MLGW) and TVA on potential ways to power the facility.
Mayo also said the company is relocating some equipment from its first site at 3231 Paul R. Lowry Road to Tulane Road, using property in Mississippi for equipment staging areas. Mayo said the company is “copying and pasting” operations from how the first xAI campus was built at Paul R. Lowry Road, the former Electrolux building site.
In May, xAI and Solaris Energy Infrastructure entered into a partnership to form a new subsidiary called Stateline Power LLC. That entity has a $555 million loan for equipment, according to a U.S. Securities and Exchange Commission (SEC) filing from Solaris.
According to the May SEC filing, the loan is being used for equipment at 2979 Stateline Road in Southaven and 5420 Tulane Road in Memphis.
Texas-based Solaris specializes in gas turbines, microgrid and emergency, off-grid power solutions.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at [email protected], 901-426-0679 or via X/Twitter: @neilStrebig.
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