XAI subsidiary to lease 500-plus acres to energy cooperative
The Economic Development Growth Engine for Memphis and Shelby County will vote Wednesday, Sept. 17, on a sublease between CTC Property LLC, the xAI subsidiary, and includes solar as a possiblity. (aul Sancya/AP file)
A subsidiary of xAI will sublease 552 acres of Memphis and Shelby County Port Commission land to a power cooperative.
The Economic Development Growth Engine for Memphis and Shelby County will vote Wednesday, Sept. 17, on a sublease between CTC Property LLC, the xAI subsidiary, and Seven States Power Corp., an energy solutions cooperative operated by the 153 local power companies across seven states of the Tennessee Valley.
The EDGE resolution said the sublease with CTC will be 34 years from the effective date and includes “solar as an eligible use of property.”
Seven States Power Corp. distributes Tennessee Valley Authority-generated electricity and provides “EV (electric vehicle) chargers, solar arrays, backup generation, combined heat and power, battery storage, cybersecurity, economic analysis and distributed energy resource management systems,” according to its website.
Seven States Power Corp. would pay rent to CTC.
The annual rent for the property is $1.65 million with a 2.5% annual increase, according to EDGE. CTC’s lease notes that the company will not pay rent for the first year but will have monthly payments of $137,913 in its second year.
After the 22nd year, CTC could buy the land for $23.6 million. The new sublease agreement states the option to purchase extends to Seven States Power Corp. if CTC does not buy it.
The agreement also said “CTC will retain responsibility for building a paved road from Paul R. Lowry Road across the (Canadian National Railway) railroad lead track to the premises.”
In October 2024, EDGE approved the 21-year lease for the Pidgeon Industrial Land Park land, The Daily Memphian reported. In March 2025, CTC signed the agreement.
The Daily Memphian also reported that the land allowed the company to expand its Southwest Memphis data-center footprint and office space, add technology and engineering hubs, deploy additional megapacks and build a continuing-education center.
Reporter Sophia Surrett contributed to this story.
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xAI Economic Development Growth Engine (EDGE) Seven States Power Corp.Dima Amro
Dima Amro is a native Memphian who covers commercial real estate and economic development for The Daily Memphian. She received her B.A. in journalism at the University of Memphis and M.A. in investigative journalism at American University.
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