SpaceX Subsidiary Buys Memphis Data Center for 185 Million Dollars

May 24, 2026
An affiliate of Phoenix Investors has sold the 217-acre Colossus I data center in Memphis, Tennessee, to a subsidiary of SpaceX for 185 million dollars. The facility, known as the first data center of xAI, spans 785,000 square feet.

In a press release, an affiliate of Phoenix Investors announced the sale of the Colossus I data center in Memphis, Tennessee, to a subsidiary of SpaceX for 185 million dollars. The transaction includes 217 acres of land and a 785,000 square foot facility located at 3231 Paul R Lowry Road.

The property, known as Colossus I, serves as the first data center for xAI, which is a subsidiary of SpaceX. The site is part of a broader effort to expand data infrastructure in the region.

Phoenix Investors stated that the sale is part of its strategy to reposition former industrial and manufacturing facilities across the United States for new uses such as data centers. The company holds interests in approximately 86 million square feet of industrial properties across 27 states.

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