Elon Musk plans to expand xAI data center capacity to 10 GW by 2027

Elon Musk has announced plans to significantly expand the data center capacity of his artificial intelligence company, xAI. During a meeting with SpaceX employees, Musk stated that the company aims to reach approximately 10 GW of AI computing capacity by the end of 2027.

Currently, xAI’s data centers in Memphis and Southaven have a combined nominal power capacity of 1.4 GW. If the expansion is successful, this would represent a sevenfold increase. Musk estimates that a 10 GW infrastructure could generate between $300 billion and $500 billion in annual revenue, based on an assumed value of $30 to $50 per watt of computing capacity.

Technical projections suggest that if the infrastructure utilizes Nvidia’s next-generation Vera Rubin systems, the scale could include between 2.1 million and 2.4 million Rubin GPUs. This would equate to roughly 29,000 to 33,000 NVL72 VR200 systems, potentially placing xAI’s total computing power well above currently active public systems.