Tennessee is emerging as a growing destination for data center development, with AI and high-performance computing driving new investment across the state. Blackridge Research tracks 10 upcoming data center projects in Tennessee, representing approximately 380 MW of planned capacity and USD 4.6 billion in construction expenditure. The pipeline includes projects at planning, announced, under-construction, and contract-award stages.

Major developments include xAI's Colossus campus in Memphis, Meta's Gallatin campus, and new AI-focused projects in McMinnville, Knoxville, and other Tennessee markets. These developments span AI infrastructure, hyperscale facilities, and emerging digital infrastructure projects.

This article examines the top 5 upcoming data center projects in Tennessee, comparing their capacity, location, developer, investment, development stage, and expected timelines.

List of Top 5 Upcoming Data Center Projects in Tennessee, USA

xAI Colossus AI Data Center Campus (Tulane Road expansion)

xAI is expanding its Colossus AI data center campus in Memphis, Tennessee, into one of the largest single-site AI computing developments in the world. The expansion includes a third building near the existing Colossus facilities and is planned to bring the overall campus to approximately 2 GW of power capacity and more than 555,000 NVIDIA GPUs. xAI has invested heavily in the Memphis campus to support large-scale training of its Grok AI models.

Capacity and Power Infrastructure

The Colossus campus,one of the largest data centers in the USA, is planned to reach approximately 2 GW of total power capacity across multiple buildings in the Memphis area. The existing Colossus 1 facility operates at roughly 500 MW, while Colossus 2 adds approximately 1 GW of capacity. A third building, known as “MACROHARDRR,” is planned as another major expansion of the campus.

The combined development is expected to support more than 555,000 GPUs, including NVIDIA GB200 and GB300 systems. xAI has indicated that the broader Colossus deployment represents part of its strategy to rapidly increase AI computing capacity for training and operating its Grok models.

The Memphis campus is located near the Southaven Combined Cycle natural gas power plant, which has a reported generation capacity of approximately 780 MW, while additional gas-fired generation has been associated with the broader Colossus expansion.

Development Status and Timeline

• 2024: xAI brought its first Colossus facility in Memphis online following an accelerated data center buildout.

• 2025: Colossus 2 became operational as xAI expanded its AI computing capacity with large deployments of NVIDIA Blackwell systems.

• December 2025: Elon Musk announced the acquisition of a third building near the Colossus campus.

• January 2026: The expanded Colossus complex was reported at approximately 2 GW of total capacity and more than 555,000 GPUs.

• 2026: The third building is planned for conversion and additional AI infrastructure deployment.

• Current status: Operational and expanding, with additional capacity under development.

Key Contractors and Partners

Meta Gallatin Data Center

Meta’s Gallatin Data Center is a large-scale greenfield data center campus in Gallatin, Tennessee, spanning approximately 900 acres. The multi-building campus is planned to include up to 12 data halls and two administrative buildings, with more than 1.5 million square feet of total infrastructure. 

The project represents an investment of more than USD 1.5 billion in Tennessee and is designed to support Meta’s expanding cloud, social media, and AI infrastructure.

Capacity and Power Infrastructure

The Gallatin campus is one of the largest upcoming data centers of Meta and expected to require approximately 300 MW of electricity when fully developed. Meta has partnered with the Tennessee Valley Authority (TVA) to match the facility's electricity consumption with 100% renewable energy, supported by more than 500 MW of local solar capacity.

The campus uses a direct-air cooling approach rather than conventional air conditioning. The system uses outside air and fans to manage temperatures and captures and reuses heat generated by computing equipment. The facility also incorporates rainwater management systems, native landscaping, and approximately 30 acres of pollinator habitat.

Meta has continued expanding the site after its initial launch, including plans for specialized tent-based GPU facilities intended to accelerate the deployment of AI computing capacity.

The Gallatin campus was designed around Meta’s broader sustainability objectives and has received LEED Gold certification.

Development Status and Timeline

• 2020: Construction of the Gallatin Data Center began, with DPR Construction serving as the general contractor.

• November 2024: The facility began serving global internet traffic with its initial operational footprint.

• 2025: The campus recorded approximately 53.4 million gallons of water use as operations expanded.

• 2026: Meta continued development toward its planned multi-building campus, including specialized facilities for accelerated GPU deployment.

• Full build-out: The campus is planned to include up to 12 data halls and more than 1.5 million square feet of infrastructure.

• Current status: Operational and actively expanding.

Key Contractors and Partners

Cielo Clarksville Data Center

Cielo Digital Infrastructure is planning the Cielo Clarksville Data Center on approximately 107 acres in Clarksville, Montgomery County, Tennessee. The purpose-built campus is planned as a scalable, multi-building data center development designed to support high-density computing while limiting water consumption. 

The project represents an estimated USD 6.6 billion investment in the Clarksville community, including the infrastructure and mechanical and electrical systems required for long-term operations.

Capacity and Power Infrastructure

The Clarksville campus is planned as a multi-building development with a focus on efficient power and cooling infrastructure. Each planned building is designed to provide approximately 108 MW of capacity and about 300,000 square feet of building area across two floors.

The facility is planned to achieve a PUE of 1.3 or lower, supporting efficient operation at scale. Its connectivity design includes four points of entry (POEs) and access to multiple fiber providers.

Water efficiency is a key part of the campus design. The planned cooling system uses an air-cooled, closed-loop configuration in which cooling fluid circulates through a sealed system, absorbs heat from computing equipment, and returns to air-cooled chillers. The cooling fluid is reused rather than continuously consumed, reducing the facility's dependence on local water resources.

The campus is planned for colocation and high-density computing applications, including AI workloads. Cielo Clarksville represents an estimated USD 6.6 billion investment in the local community.

Development Status and Timeline

• Planning stage: Cielo Digital Infrastructure identified approximately 107 acres in Montgomery County for the planned campus.

• Planned development: The site is designed as a scalable, multi-building data center campus.

• Investment: Estimated project investment is approximately $6.6 billion.

• Current status: Planned/pre-development stage.

Key Contractors and Partners

Bitdeer Knoxville Data Center

Bitdeer Technologies Group is converting its existing data center infrastructure in Knoxville, Tennessee, into an AI-focused computing facility. Located at 5101 S National Drive, the campus has approximately 86 MW of total power capacity and is being developed through a phased AI conversion program. Bitdeer is targeting completion of the initial conversion phase in late 2026, with further development planned for 2027.

Capacity and Power Infrastructure

The Knoxville facility has a total power capacity of approximately 86 MW. The site is transitioning from its established cryptocurrency mining operations toward AI data center infrastructure, allowing Bitdeer to reuse existing power and facility infrastructure for higher-value computing workloads.

Approximately 60% of the site's electricity supply is carbon-free, supporting Bitdeer's broader focus on lower-carbon data center operations.

The AI conversion is being developed in phases. Phase 1 focuses on the initial conversion and design work, while subsequent phases are expected to expand the site's AI computing capabilities. Bitdeer has experience operating data centers using different cooling technologies, including air cooling and liquid cooling, depending on site and workload requirements.

AI Infrastructure and Sustainability

The Knoxville development forms part of Bitdeer's broader expansion from cryptocurrency mining infrastructure into AI and high-performance computing. The company operates and manages data center infrastructure across multiple international locations and is adapting selected facilities to support AI workloads.

The company's data center strategy incorporates energy-efficient infrastructure and cooling technologies, including liquid cooling and air cooling. At Knoxville, the conversion allows existing data center infrastructure and available power capacity to be repurposed for AI computing.

Development Status and Timeline

• Early 2026: Bitdeer initiated Phase 1 AI data center conversion design work at the Knoxville facility.

• Q4 2026: Phase 1 design and conversion work is targeted for completion.

• Q1 2027: Bitdeer plans to begin the next phase of development.

• 2027: Further AI infrastructure deployment is expected as the phased conversion progresses.

• Current status: Existing data center with AI conversion and expansion underway.

Key Contractors and Partners

Hixson Data Center

The Hixson Data Center is a planned 25 MW AI data center campus in McMinnville, Warren County, Tennessee. Developed as a purpose-built facility for high-density GPU workloads, the project will span approximately 96,065 square feet across two levels and is designed to support NVIDIA GB200 NVL72 systems. The campus is planned as a single-tenant facility, with completion targeted for Q1 2028.

Capacity and Power Infrastructure

The Hixson Data Center is designed to provide 25 MW of sellable IT capacity with a target PUE of approximately 1.15. Unlike conventional data centers that depend on utility grid connections, the project is being developed around a grid-island power architecture using on-site generation and energy storage.

Bloom Energy has agreed to provide approximately 30 MW of guaranteed power capacity through solid oxide fuel cell (SOFC) technology, supported by a 33.15 MW nameplate system. The facility will also include a 25 MW battery energy storage system and eight 4.4 MW continuous diesel generators for tertiary power generation.

The electrical design includes 13.8 kV medium-voltage distribution, ring-bus routing, closed-transition switching, dual-corded IT infrastructure, and centralized UPS systems. The facility is designed with N+1 or higher redundancy across major systems to support continuous AI workloads.

The facility is purpose-built for high-density GPU computing, with AI racks designed around approximately 132 kVA per rack based on the NVIDIA GB200 NVL72 platform.

Cooling will use a combination of direct-to-chip liquid cooling, coolant distribution units, chilled-water air handling units, hot-aisle containment, and economizer heat exchangers. This cooling architecture is intended to support high-density AI hardware while maintaining the project's targeted PUE of approximately 1.15.

Development Status and Timeline

• May 2026: The 25 MW Hixson Data Center project was publicly reported as being developed in McMinnville, Tennessee.

• 2026: The developer began financing activities and marketing the full 25 MW IT capacity to a single tenant.

• Power development: Agreements were established with Bloom Energy for approximately 30 MW of guaranteed on-site SOFC power.

• 2026–2027: Development, financing, engineering, and construction activities are expected to progress.

• Q1 2028: Targeted completion and opening.

• Current status: Planned/under development.

Key Contractors and Partners

Tennessee Data Center Market Overview

Tennessee is emerging as a growing market for data center development, supported by rising demand for AI, cloud computing, and high-performance computing infrastructure. Blackridge Research tracks 10 upcoming data center projects in Tennessee, representing approximately 380 MW of planned capacity and USD 4.6 billion in construction expenditure.

The state's pipeline includes 5 projects in planning, 2 announced projects, 2 under construction, and 1 at the contract-award stage. Major data center activity is concentrated around Memphis, Nashville, Knoxville, and emerging locations such as McMinnville and Cleveland.

AI is becoming a major driver of new development. New facilities are increasingly designed for high-density GPU workloads, which require greater power capacity, advanced cooling, and reliable grid or dedicated power infrastructure. Tennessee's access to the Tennessee Valley Authority (TVA) power network, industrial land, fiber connectivity, and existing transmission infrastructure also supports data center development.

It is important to distinguish between operational facilities and upcoming projects. Tennessee has an established base of enterprise and colocation facilities, while newer developments include large AI and hyperscale projects that are still being planned, constructed, or expanded.

AI Data Centers in Tennessee

The growth of artificial intelligence is creating new demand for AI data centers in TN, particularly facilities designed for high-density GPU computing and AI training and inference workloads. Tennessee's major AI developments include xAI's Colossus campus in Memphis, AI-related expansion at Meta's Gallatin campus, and new purpose-built facilities in emerging markets.

High-density GPU racks generate significant heat and require advanced cooling technologies, while large AI campuses can require hundreds of megawatts of electricity. This makes power availability, grid connectivity, substations, transmission infrastructure, and dedicated generation important factors in site selection.

Cooling is another key consideration. New AI facilities are increasingly adopting liquid cooling and other high-efficiency cooling systems to manage the heat generated by dense GPU deployments. These requirements are influencing both the design of new facilities and the conversion of existing infrastructure for AI and high-performance computing.

One example is the 25 MW Hixson Data Center in Warren County, which is being developed specifically for high-density AI workloads. The facility is designed with a stated PUE of 1.15 and is targeting an opening in Q1 2028. Its design illustrates the shift toward purpose-built AI infrastructure, where power architecture, cooling, and computing density are considered from the beginning of the project.

Conclusion

Tennessee's data center pipeline reflects the state's growing role in AI, hyperscale, and high-performance computing infrastructure. Blackridge Research tracks 10 upcoming projects totaling approximately 380 MW and USD 4.6 billion in construction expenditure, with projects progressing across planning, announcement, construction, and contract-award stages.

Projects in Memphis, Nashville, McMinnville, Knoxville, and other emerging locations demonstrate the geographic expansion of Tennessee's data center market. AI-focused facilities are also increasing demand for high-capacity power infrastructure, advanced cooling systems, and reliable connectivity.

Find Upcoming Data Center Projects in Tennessee, USA

Unlock United States Data Center Opportunities! Introducing Blackridge Research's Global Project Tracking (GPT) platform:

• Instant access to the latest Data Center Facility Projects in the United States

• Comprehensive insights from planning to completion

• Essential details: scope, CapEx, timelines, and key contacts

• User-friendly interface for quick opportunity identification

Want more data center construction insights, including planned projects, active companies, and key decision-makers? Get started with our project tracker demo today.

Why Blackridge’s Global Projects Tracker? 

Blackridge’s Global Projects Tracker covers projects from 150 countries and is updated with real-time, accurate, and authentic project developments. By subscribing to our United States Data Center projects database, you can get access to key contact details of ongoing and upcoming projects, project timelines and overviews, and regular alerts on project developments, all served to you through an easy-to-use interface.