xAI’s ambitious ‘Colossus’ supercomputing center in Memphis, Tennessee is facing challenges due to insufficient power grid capacity. The project has received a significant investment of $406 million to deploy one million GPUs and aims to establish itself as a global hub for AI computing. However, only 150 megawatts of electricity have been approved, falling short of the facility’s requirements. To address this shortfall, xAI is exploring natural gas power generation alongside its existing infrastructure to supply an additional 250 megawatts. Additionally, the company is actively seeking new land to increase capacity. The project has the potential to exceed $27 billion, placing Memphis in a position for global leadership in AI computing.