Elon Musk’s artificial intelligence company, xAI (PC:XAIIQ), recently told officials in Memphis that it plans to build a solar farm next to its Colossus data center. The solar farm would take up 88 acres of land to the west and south of the data center. This land is next to a 136-acre empty lot owned by the same developer behind the Colossus site. Based on its size, the solar farm would likely produce around 30 megawatts of electricity, which is only about 10% of the total power the data center is expected to use.
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However, xAI is facing criticism for using over 400 megawatts of natural gas turbines without getting permits first. The Southern Environmental Law Center (SELC), which is working with the NAACP, says that the company has run at least 35 turbines that could release more than 2,000 tons of nitrogen oxide (NOX) pollution each year. This type of pollution can lead to smog and breathing problems. Notably, researchers from the University of Tennessee found that nitrogen dioxide levels in the area went up by 79% after xAI started operating. Locals have also noticed more asthma attacks and other respiratory issues since the center opened.
xAI said that it needs to use the turbines until it can get more power, and local officials have allowed the company to run 15 of them through January 2027. In the meantime, xAI announced plans in September to build a 100-megawatt solar farm in the area, along with 100 megawatts of large-scale batteries, so the facility can have electricity around the clock. The total cost of that project hasn’t been shared, but the company building it, Seven States Power Corporation, got $439 million from the U.S. Department of Agriculture, with $414 million of that as an interest-free loan.
What Is the Prediction for Tesla Stock?
When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $383.04 per share implies 9.8% downside risk.
