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xAI has requested a construction permit for a $659 million data center expansion in Memphis, Tennessee, proposing a 312,000 sq. ft. facility adjacent to the existing Colossus 2 data center. The new four-story building will support the Grok AI chatbot but faces lawsuits from environmental groups over alleged unpermitted gas turbine use.

Concurrently, the U.S. is seeing a trend of opposition against data center projects, with $64 billion worth delayed or blocked. In India, tax incentives are attracting data centers, though their water and electricity consumption raises significant environmental concerns.