# Musk Sets xAI Ground Compute Target at 10GW by December 2027 > Source: > Published: 2026-08-15 14:11:27.284464+00:00 # Musk Sets xAI Ground Compute Target at 10GW by December 2027 - xAI is targeting 10GW of terrestrial AI compute capacity by the end of 2027, Musk said at a SpaceX employee meeting. [[1]](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) - The company’s Memphis and Southaven facilities were reported at 1.4GW of combined nameplate power draw, implying roughly sevenfold expansion. [[1]](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) - Musk estimated that 10GW online could support $300 billion-$500 billion in annual revenue at $30-$50 per watt; the figure is an estimate, not disclosed contracted revenue. [[1]](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) - SpaceX’s 2026 prospectus listed Colossus and Colossus II at approximately 1.0GW of combined compute power, with another 400MW planned at Colossus II. [[2]](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf) Elon Musk said SpaceX’s xAI operation is targeting 10GW of terrestrial AI compute capacity by December 2027, expanding from a reported 1.4GW of nameplate power draw at data centers in Memphis, Tennessee, and Southaven, Mississippi. Musk made the statement during a meeting with SpaceX employees, according to Tom’s Hardware. [[1]](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) “We are aiming to get to 10 GW [of compute] by the end of next year,” Musk said. The target implies roughly sevenfold growth from the 1.4GW figure reported for the current footprint. [[1]](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) The target is a power and infrastructure measure, not a direct measure of accelerator performance. Nameplate draw includes cooling, power distribution, networking, storage and other facility loads in addition to GPUs. [[1]](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) ## The Target Musk said xAI could generate $300 billion-$500 billion in annual revenue if it brings 10GW of AI compute online and achieves a value of $30-$50 per watt. The estimate was attributed to Musk and was not presented as a contracted-revenue forecast. [[1]](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) SpaceX completed its acquisition of xAI on February 2, 2026, according to SpaceX and Tesla regulatory disclosures. [[3]](https://www.sec.gov/Archives/edgar/data/1181412/000162828026040610/spacexfwp.htm)[[4]](https://www.sec.gov/Archives/edgar/data/1318605/000110465926053166/tm2611837d1_10ka.htm) ## Existing Footprint Tom’s Hardware reported that SpaceX’s xAI data centers in Memphis and Southaven had a combined rated power draw of 1.4GW. SpaceX’s own prospectus uses a different metric, stating that Colossus and Colossus II together provided approximately 1.0GW of compute power, with additional power capacity available for operations. [[1]](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)[[2]](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf) The prospectus also said the next phase of Colossus II would add 400MW of compute capacity once fully operational. xAI’s Memphis facility separately says it planned to equip Colossus with 1 million GPUs by 2026. [[2]](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf)[[5]](https://x.ai/memphis) ## Terrestrial and Orbital Roadmaps The 10GW target concerns terrestrial AI infrastructure. Separately, SpaceX’s prospectus says it expects to begin deploying orbital AI compute satellites as early as 2028. [[2]](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf) Reuters reported in June that SpaceX executives were targeting initial demonstrations of space-based AI-computing infrastructure by late 2027, ahead of broader deployment. [6] Those orbital demonstrations are a separate program from the terrestrial capacity target described by Musk. [[2]](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf) [[6]](https://www.investing.com/news/stock-market-news/spacex-aims-to-launch-orbital-ai-computing-tests-by-end-of-next-year-sources-say-4734156)## Companies mentioned ## Further sources [[1] Tom’s Hardware, “Elon Musk says xAI will increase data center capacity 7x by 20… ↗](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) [[2] SpaceX, 2026 prospectus, describing Colossus and Colossus II compute capacity, … ↗](https://content.spacex.com/cms-assets/FINAL_Documents%20and%20Updates/SpaceX%20-%20EU%20Prospectus%20%28Approved%20by%20Bafin%29%20-%20June%205%2C%202026.pdf) [[3] SpaceX, Canadian prospectus disclosure stating that the xAI Merger was consumma… ↗](https://www.sec.gov/Archives/edgar/data/1181412/000162828026040610/spacexfwp.htm) [[4] Tesla SEC filing stating that xAI Holdings was acquired by and became a wholly … ↗](https://www.sec.gov/Archives/edgar/data/1318605/000110465926053166/tm2611837d1_10ka.htm) [[5] xAI’s Memphis facility page, describing Colossus and the planned deployment of … ↗](https://x.ai/memphis) [[6] Reuters, “SpaceX aims to launch orbital AI computing tests by end of next year,… ↗](https://www.investing.com/news/stock-market-news/spacex-aims-to-launch-orbital-ai-computing-tests-by-end-of-next-year-sources-say-4734156) The stories that matter, in one email. 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