Elon Musk’s xAI Reveals Colossal Data Center Power Strategy

Elon Musk's xAI builds a data center that could power a small country—and Wall Street analysts are already calculating the electricity bills.

The Power Behind the Beast

Musk's artificial intelligence venture races toward computational supremacy, demanding energy solutions that dwarf conventional data operations. The colossus facility consumes megawatts like candy, pushing power infrastructure to its absolute limits.

Grid-Defying Architecture

xAI bypasses traditional energy constraints through radical cooling systems and distributed computing frameworks. The operation cuts power waste by staggering computational loads across global nodes—because why pay peak rates when you can chase cheap electricity around the planet?

Renewable Realities

Solar arrays and wind farms feed the beast, but the operation still draws emergency power from fossil fuels during computational sprints. Perfect green credentials remain elusive when you're training models that could bankrupt a national grid.

Financial analysts watch with mixed horror and fascination—another Musk venture burning cash faster than a crypto miner during a bull run.

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However, xAI is facing criticism for using over 400 megawatts of natural gas turbines without getting permits first. The Southern Environmental Law Center (SELC), which is working with the NAACP, says that the company has run at least 35 turbines that could release more than 2,000 tons of nitrogen oxide (NOX) pollution each year. This type of pollution can lead to smog and breathing problems. Notably, researchers from the University of Tennessee found that nitrogen dioxide levels in the area went up by 79% after xAI started operating. Locals have also noticed more asthma attacks and other respiratory issues since the center opened.

xAI said that it needs to use the turbines until it can get more power, and local officials have allowed the company to run 15 of them through January 2027. In the meantime, xAI announced plans in September to build a 100-megawatt solar farm in the area, along with 100 megawatts of large-scale batteries, so the facility can have electricity around the clock. The total cost of that project hasn’t been shared, but the company building it, Seven States Power Corporation, got $439 million from the U.S. Department of Agriculture, with $414 million of that as an interest-free loan.

What Is the Prediction for Tesla Stock?

When it comes to Elon Musk’s companies, most of them are privately held. However, retail investors can invest in his most popular company, Tesla (TSLA). Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $383.04 per share implies 9.8% downside risk.