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- An affiliate of Elon Musk’s xAI plans to sublease 552 acres of Memphis property to an energy cooperative.
- Seven States Power Corp. will build a solar farm on the site, which is expected to be completed by 2028.
- The solar farm aims to generate up to 100 megawatts of power and include battery storage.
A Nashville-based affiliate of Elon Musk’s xAI plans to sublease 552 acres of Memphis and Shelby County Port Commission property to an energy solutions cooperative that will build a solar farm on the site.
The Economic Development Growth Engine for Memphis and Shelby County (EDGE) board on Sept. 17 unanimously approved a request from CTC Property LLC to be allowed to sublease the property —located southeast of the xAI facility at 3231 Paul R. Lowry Road — to Seven States Power Corp. Under the agreement, CTC will remain the primary tenant.
According to Seven States CEO Betsey McCall, the next steps for the site include obtaining approval from the USDA for environmental clearance. The solar farm is expected to be completed in 2028 at the latest.
“We look forward to exploring the opportunity that is project brings to deliver low-cost power to the community and to the region,” McCall said. “This is a once-in-a-generation opportunity.”
McCall said the goal is to build a facility that generates up to 100 megawatts, along with up to 100 megawatts of battery storage, noting the total cost of the project has yet to be worked out.
Funding is largely sourced from the USDA’s Empowering Rural America program, which awarded $439 million to Seven States in January, for the purpose of building a “utility scale solar facility” — $414 million of that money was through a zero-interest loan.
Chattanooga-based Seven States Power Corp. serves 153 local power companies across seven states of the Tennessee Valley. The firm’s turnkey products and services include electric vehicle chargers, solar arrays and backup generation solutions, according to the company’s website.
What are the terms of sublease between CTC Property and Seven States?
CTC maintains sole responsibility to make payments to EDGE for the 34-year sublease. Seven States will in turn maintain the site and make payments to CTC.
Seven States would pay rent to CTC and have an option to purchase the land should CTC elect to not exercise its option to buy it after the lease term expires, according to the resolution.
CTC will retain responsibility for building a paved road from Paul R. Lowry Road across the CN railroad lead track to the premises.
In October 2024, the EDGE board approved a 21-year lease with CTC for the 522 acres southeast of the xAI facility at 3231 Paul R. Lowry Road, the former Electrolux building.
According to that lease term sheet, CTC would pay no rent in the first year, after which the company will pay $1,654,961 annually in rent with 2.5% yearly increases. After that lease term expires (2045 if the full 21-year term is completed), CTC can purchase the property for $23,642,293.
The property is located on a 671-acre parcel, owned by EDGE, and has an appraisal value worth $2,494,000. EDGE acquired the property in March 2015, according to records from the Shelby County Register of Deeds.
Corey Davis is the Collierville and Germantown reporter with The Commercial Appeal. He can be reached at Corey.Davis@commercialappeal.com or 901-293-1610.
Jacob Wilt is a reporter for The Commercial Appeal covering DeSoto County, as well as Dining in the Memphis area. You can reach him at jacob.wilt@commercialappeal.com.
