Elon Musk’s xAI is looking to expand its Memphis footprint — by about 500 acres.
Nashville-based CTC Property LLC is seeking a 21-year lease for 522 acres in Frank C. Pidgeon Industrial Park. The land is currently owned by the Economic Development Growth Engine for Memphis and Shelby County (EDGE).
On Wednesday, EDGE shared documents associated with the property lease. The planned use of the site was not specified. The pending real estate transaction will be discussed on Friday, Oct. 4, for a special-called meeting of the organization’s industrial board.
According to the lease term sheet, CTC Property will pay $1,654,961 annually in rent, with 2.5% yearly increases. After the 21-year lease expires, the company can purchase the property for $23,642,293. The lease agreement does not specify what the 522 acres will be used for.
CTC Property is an affiliate of xAI and was incorporated in Tennessee in March 2024. In July, Brent Mayo of CTC Property filed a certificate of occupancy permit with the Memphis and Shelby County Division of Planning and Development for 3231 Paul R. Lowry Road. The site is the former Electrolux building and the current Memphis headquarters for xAI.
SUPERCOMPUTER IN MEMPHIS:Memphis groups call for better environmental watch on xAI, Chamber: ‘We deserve better’
In June, EDGE President and CEO Joann Massey confirmed xAI would not be seeking public incentives for its Paul R. Lowry Road facility. EDGE owns more than 600 acres of property directly behind the xAI facility and former Electrolux building.
On Wednesday, The Commercial Appeal reported on plans for a $78 million greywater treatment plant in association with xAI. The wastewater plant is called the “Colossus Water Recycle Facility” The facility is a collaborative project between xAI, the Tennessee Valley Authority (TVA) and Nucor Steel, according to preliminary schematics filed with the Tennessee Department of Environment and Conservation (TDEC).
This story will be updated.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X/Twitter:@neilStrebig
