Elon Musk’s xAI Company Acquires Third Building to Boost AI Computing Capacity

Elon Musk’s xAI company has purchased a third building near its existing Memphis sites in the US, expanding its artificial intelligence (AI) computing capacity to nearly 2 gigawatts (GW). The company, known for its association with Tesla and SpaceX, already operates the Colossus data center in Memphis and is working on a second facility named Colossus 2.
The newly acquired building, located in Southaven, Mississippi, is adjacent to the Colossus 2 facility, as confirmed by sources familiar with the situation. Musk shared the news on a social media platform, mentioning that the new building, called Macrohardrr, will significantly enhance xAI’s training compute to almost 2GW.
A gigawatt of power can supply electricity to approximately 750,000 homes in the US. Musk has ambitious plans to establish the world’s largest data center for AI training, with Colossus 2 expected to house around 550,000 chips from Nvidia, with costs running into tens of billions of dollars.