Elon Musk’s artificial intelligence company, xAI, is planning to establish a significant data center presence in Atlanta, Georgia, with operations expected to begin in 2025. The company is reportedly investing in a substantial facility that will support its AI development efforts, particularly for its chatbot Grok. The data center represents a strategic move to expand xAI’s computing infrastructure and compete with other major AI players. The facility is expected to require considerable power capacity, with estimates suggesting it could use between 20 and 100 megawatts of electricity. This development indicates xAI’s serious commitment to scaling up its AI operations and suggests the company is preparing for more intensive computational tasks. The choice of Atlanta as a location is significant, as the city has become an increasingly important hub for data centers due to its reliable power infrastructure and favorable business environment. The project also highlights the growing infrastructure demands of AI development, as companies require increasingly powerful computing facilities to train and run large language models. This move comes as Musk continues to position xAI as a competitor to other AI companies like OpenAI and Anthropic, with the new data center potentially providing the computational backbone needed for more advanced AI model development and deployment.
Source: https://www.businessinsider.com/xai-elon-musk-x-new-atlanta-data-center-2025-2