An affiliate of Phoenix Investors announced the sale of a 217-acre, 785,000-square-foot data center property in Memphis, Tennessee to a subsidiary of SpaceX for $185 million. The facility, located at 3231 Paul R Lowry Road, is commonly referred to as Colossus I, the first data center of xAI, which is a subsidiary of SpaceX.

The transaction highlights the continued expansion of large-scale AI and digital infrastructure investments tied to the growing demand for compute capacity and data center assets. The Memphis property represents one of the larger AI-focused infrastructure facilities associated with xAI’s operations.

Phoenix Investors said the Colossus I site spans 217 acres and includes approximately 785,000 square feet of space designed for data center operations.

Phoenix Investors is focused on the acquisition, renovation, and release of former manufacturing facilities across the United States. The company has also expanded into acquiring and repositioning data center assets as demand for digital infrastructure continues to accelerate.

According to the company, Phoenix affiliate companies hold equity interests in a portfolio of industrial properties totaling approximately 86 million square feet across 27 states.