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SpaceX Acquires 785K SF Memphis Industrial Asset for $185M xAI Data Center Conversion

SpaceX acquires a 785,000-square-foot industrial facility in Memphis for $185 million to house its first xAI data center.

By Colin Percy · May 26, 2026

SpaceX has purchased a 785,000-square-foot industrial facility at 3231 Paul R. Lowry Road in Memphis, Tenn., for $185 million. Known as Colossus I, the property sits on 217 acres within the city's Southwest submarket and is designated to house xAI’s flagship AI training supercomputer. The asset was previously owned by an affiliate of Phoenix Investors, which had acquired the former Electrolux manufacturing plant for $35 million in December 2023.

Completed in 2013, the facility features seven dock-high loading doors, nine drive-in doors, and 62 truck wells. Its location provides proximity to Interstates 55, 69, and 240, as well as the Memphis International Airport. The acquisition represents a significant expansion for xAI, which continues to grow its infrastructure footprint alongside ongoing development proposals in other regions.

Companies mentioned

owner

SpaceX

developer

Phoenix Investors

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