$20M construction permit approved for new xAI building

MEMPHIS, Tenn. -- Elon Musk's xAI continues to build upon its footprint here in the Mid-South.

A $20 million construction permit has been issued for a new building on the Colossus Two campus in Whitehaven. The permit was approved earlier this week.

The building is being zoned as a commercial office building and will mark xAI's sixth phase of construction.

The more than 300-thousand square foot office building is set to be built along Tulane Road, which is conveniently next to its colossus two supercomputer site along Tulane Road in Whitehaven and the 'macrohardrr' data center just across the stateline in Southaven.

The building will be four stories high and made out of pre-engineered metal.

The approval comes as xAI recently announced it would be putting its water recycling project on hold - until construction at Colossus Two is completed.

That plant would cool xAI's colossus computer - grok - and help preserve a projected five billion gallons of water each year. Something members of the environmental group - Protect Our Aquifer say they were excited about.

"We were very excited about the project. We supported the project. Whatever your feelings are about xAI, this was something that was very good for the aquifer system," said Scott Schoefernacker, science director of Protect Our Aquifer. "Put your money where your mouth is and finish the job."

Those with xAI say while they're currently prioritizing other, more immediate projects at the Colossus Two site, they are still committed to building the water recycling plant.