SpaceXAI Plans Major Texas Data Center to Boost AI Capacity, Report Says

Elon Musk’s artificial intelligence firm, SpaceXAI, is preparing to build at least one large-scale data center in Texas, according to a report from The Information citing three people familiar with the matter. The expansion signals a significant investment to increase the company's AI computing capacity.

Expansion Details

SpaceXAI has reportedly been evaluating several potential locations across Texas in recent months. The company is considering multiple development strategies, including constructing new facilities from the ground up or converting existing industrial buildings, two of the sources told The Information.

This approach mirrors the strategy used for its first data center in Memphis, Tennessee, which was adapted from a former manufacturing facility. The planned Texas expansion is expected to either match or exceed the scale of the company's current Memphis operations, one source said.

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Boosting Computing Power

The primary goal of the new facility is to bolster SpaceXAI's infrastructure for training and running advanced AI models. The company currently reports having approximately 1 gigawatt of computing capacity spread across two active data centers, powered by hundreds of thousands of Nvidia graphics processing units (GPUs).

This move comes as the company seeks to gain a larger foothold in the competitive AI landscape. SpaceXAI has reportedly been pursuing agreements to lease its computing capacity to external companies, a strategy that could position it as a new contender in the cloud provider market against established giants.