Elon Musk says xAI will be increasing its data center capacity by 7 times by the end of next year

Elon Musk announced that xAI will increase its data center power capacity to 10 gigawatts by the end of 2027, roughly seven times its current 1.4GW capacity across facilities in Memphis and Southaven. Musk estimated that this expansion could generate between $300 billion and $500 billion in annual revenue, based on $30 to $50 in value per watt of AI compute, and would rely heavily on Nvidia's upcoming Vera Rubin systems.

Elon Musk says xAI will be increasing its data center capacity by 7 times by the end of next year Read More https://www.pcguide.com/earnings-disclaimer/ Table of Contents Elon Musk is planning a massive expansion of xAI’s data center infrastructure, with the company expected to increase its power capacity several times over by the end of 2027. Musk discussed the plan during a meeting with SpaceX employees https://www.tomshardware.com/tech-industry/artificial-intelligence/elon-musk-says-xai-will-increase-data-center-capacity-7x-by-2027-targeting-10-gigawatts-of-compute-up-to-usd500-billion-in-revenue-by-the-end-of-next-year , outlining an ambitious target for the company’s AI infrastructure. According to Musk, xAI’s data centers could reach 10GW of power capacity by the end of 2027. That would be around seven times the company’s current capacity, which stands at roughly 1.4GW across its data centers in Memphis and Southaven. 10 gigawatts of AI compute will bring in billions of revenue, says Musk Musk also believes the expansion could translate into huge revenue. He estimated that 10GW of AI compute could potentially generate between $300 billion and $500 billion in annual revenue, based on his estimate of $30 to $50 in value for every watt of AI compute. Latest PC & Tech deals Acer Predator Helios Neo 16 - was $2,199 now $1,749 ASUS SFF-Ready RTX 5080 - was $1,499 now $1,354 Samsung Odyssey G7- was $999 now $649 HP OMEN 45L gaming PC - was $2,499 now $2,309 BIWIN Black Opal NV7400 4TB SSD - was $599 now $459 Prices correct as of July 10th, 2026. The expansion would also significantly increase the amount of computing power available to xAI. The company already operates some of the world’s largest AI training clusters, and Musk expects its infrastructure at the end of next year to be around 10 times larger than what it has built so far. However, power capacity should not be confused directly with computing performance. A data center’s total power draw also includes cooling systems, networking equipment, storage, CPUs, power delivery, and other infrastructure. Only part of the available power can actually be used by AI accelerators. xAI is also expected to rely heavily on Nvidia’s next-generation hardware for the expansion. The company currently uses a combination of Nvidia Hopper and Blackwell accelerators, but Musk has indicated that xAI plans to use Nvidia’s upcoming Vera Rubin https://www.pcguide.com/news/nvidia-explains-vera-rubin-timeline-as-it-ramps-into-full-production-of-next-gen-cpus-gpus/ systems. If the entire additional capacity were built around Nvidia’s expected NVL72 VR200 systems, the resulting infrastructure could potentially contain more than two million Rubin GPUs, based on estimates of power consumption and data center efficiency. That would make xAI’s planned infrastructure far larger than its current AI clusters. Still, reaching 10GW by the end of 2027 will require a huge amount of power, hardware, cooling infrastructure, and construction. It remains to be seen how quickly xAI can build out the capacity needed to meet Musk’s target.