Musk Sets xAI Ground Compute Target at 10GW by December 2027

Elon Musk said SpaceX's xAI operation is targeting 10GW of terrestrial AI compute capacity by December 2027, up from a reported 1.4GW at its Memphis and Southaven data centers, implying roughly sevenfold growth. Musk estimated that 10GW online could support $300 billion-$500 billion in annual revenue at $30-$50 per watt, though he did not disclose contracted revenue.

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. Free — unsubscribe anytime.