MEMPHIS, Tenn. — A company associated with Elon Musk’s xAI is looking to lease and potentially buy more than 500 acres near the company’s supercomputer in Memphis, according to documents from the city-county development authority.

The Economic Development Growth Engine board has called a special meeting Friday to consider a lease agreement with CTC Property LLC for a 522-acre parcel in the Pidgeon Industrial Park near the Mississippi River.

Nashville-based CTC Property is linked to xAI’s lease of the former Electrolux factory in Memphis, according to reporting by the Memphis Business Journal.

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The site is adjacent to where xAI recently built and powered up what it bills as the world’s largest supercomputer, nicknamed Colossus, which will power the AI tool Grok.

If approved by the EDGE board, the terms state the company would lease the site rent-free for a year, then pay $1.65 million a year, increasing by 2.5% each year, for 21 years. Two 10-year extensions are available.

At the end of the term, the company has the option to purchase the property for $23.64 million.

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The documents do not state what the land would be used for, nor do they mention xAI specifically.

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