AFFILIATE OF PHOENIX INVESTORS SELLS MEMPHIS X-AI DATA CENTER TO SUBSIDIARY OF SPACEX FOR $185 MILLION

An affiliate of Phoenix Investors has completed the sale of a significant data center property to a subsidiary of SpaceX for $185 million. The transaction, announced on May 23, 2026, involves the 217-acre site located at 3231 Paul R Lowry Road in Memphis, Tennessee, which encompasses a 785,000-square-foot facility known as Colossus I. This data center marks the inaugural facility of X-AI, a subsidiary under the SpaceX umbrella, highlighting the growing intersection of aerospace and digital infrastructure.

X-AI, as a part of SpaceX's broader strategy, aims to leverage advanced data processing capabilities to support its ambitious technological initiatives. The acquisition of Colossus I is expected to enhance SpaceX's operational efficiency and data management capabilities, particularly as the demand for robust digital infrastructure continues to surge across various sectors. The facility's size and specifications make it a strategic asset for X-AI, which is poised to benefit from the increasing reliance on data-driven technologies in aerospace and beyond.

Phoenix Investors, the seller in this transaction, is recognized as a leader in the acquisition and redevelopment of industrial properties, including data centers. With a portfolio that spans approximately 86 million square feet across 27 states, Phoenix has positioned itself as a key player in the revitalization of former manufacturing sites into modern data facilities. This sale aligns with Phoenix's strategy to capitalize on the growing demand for digital infrastructure, thereby transforming communities and stimulating local economies.

The broader implications of this transaction underscore a significant trend in the market where aerospace companies are increasingly investing in data capabilities to support their operations. As digital transformation accelerates, the integration of advanced data centers into aerospace operations is likely to become more commonplace. This acquisition not only reflects SpaceX's commitment to enhancing its technological capabilities but also signals a shift in how aerospace firms are approaching data management and infrastructure needs.

Overall, the sale of Colossus I to SpaceX represents a noteworthy development in the intersection of aerospace and data infrastructure. As the demand for digital solutions continues to grow, the strategic investments made by companies like SpaceX may redefine operational frameworks within the aerospace sector, paving the way for innovative advancements in technology and data utilization.