xAI’s Strategic Moves in Renewable Energy Amid Environmental Concerns

New updates have been reported about xAI (PC:XAIIQ)

xAI, the artificial intelligence startup founded by Elon Musk, is making strides in renewable energy by planning a solar farm adjacent to its Colossus data center in Memphis. This initiative aims to address the company’s energy needs and environmental impact. The proposed solar farm will span 88 acres and is expected to generate approximately 30 megawatts of electricity, which represents about 10% of the data center’s power consumption. This move comes as xAI faces criticism for operating over 400 megawatts of natural gas turbines without proper permits, contributing to significant nitrogen oxide emissions. These emissions have raised health concerns in nearby communities, particularly in Boxtown, where increased respiratory issues have been reported since the data center’s operations began.

In response to these challenges, xAI has announced plans for a larger 100-megawatt solar farm, coupled with grid-scale batteries to ensure a continuous power supply. While the company has not disclosed the total cost of this project, it is noteworthy that the solar farm’s developer, Seven States Power Corporation, has secured $439 million in funding from the U.S. Department of Agriculture, including a $414 million interest-free loan. This federal support is significant, especially in light of the rollback of clean energy grants and loans during the Trump administration. Additionally, xAI has expanded its energy infrastructure by adding gas turbines in Mississippi to support its Colossus 2 data center. The company currently has 59 turbines on-site, with 18 considered temporary and not subject to regulatory pollution tracking. These developments highlight xAI’s efforts to balance its energy demands with environmental responsibilities, amid ongoing scrutiny and regulatory challenges.