Elon Musk’s AI company xAI wants to spend $659 million on a new building at one of its data centers outside Memphis, Tennessee.

It has requested a new construction permit for a 312,000 sq ft (28,985 sqm) building at 5414 Tulane Road, a 79-acre land parcel adjacent to the company’s Colossus 2 data center.

Permit documents, filed with the Memphis and Shelby County Division of Planning and Development, say the four-story building will be 75 feet high, but what exactly it will house has not been revealed. News of the filing was first reported by Memphis Business Journal.

xAI uses its data centers in Tennessee to power its Grok AI chatbot. The company came to Memphis in 2024, launching its Colossus supercomputer in a new data center housed in a former Electrolux factory in Memphis’s Boxtown district.

It purchased the site for Colossus 2 last March, and the data center came online in January. Despite Musk claiming it offered 1GW of capacity at launch, satellite imagery taken in January reportedly showed it had cooling equipment installed capable of managing 350MW.

A third data center is in the works, located just across the state boundary in Mississippi. Musk says his company, which is now part of SpaceX, will eventually have access to 2GW of compute power from the cluster.

xAI is currently being sued by environmental campaigners over alleged unpermitted use of gas turbines at the Colossus 2 data center. The company has faced much criticism about the polluting nature of the turbines, which have been used to help get the sites up and running quickly.