Daijiworld Media Network - Memphis
Memphis, Dec 31: Billionaire Elon Musk’s artificial intelligence company xAI is planning a major expansion of its massive data centre complex in Memphis, with the purchase of a third building that will take the company’s AI computing capacity close to 2 gigawatts.
Musk revealed the development in a post on X on Tuesday, stating that xAI has acquired a new facility named ‘MACROHARDRR’. “xAI has bought a third building called MACROHARDRR. Will take @xAI training compute to almost 2GW,” he wrote. A gigawatt of power is sufficient to supply electricity to around 7.5 lakh homes in the US.
xAI has already established a large data centre in Memphis known as Colossus and is currently building a second nearby facility called Colossus 2. The newly acquired building is located in Southaven, Mississippi, and adjoins the Colossus 2 site, according to a report by The Information, citing property records and sources familiar with the project.
Musk has earlier outlined his ambition to build the world’s largest data centre dedicated to AI training. He has said that Colossus 2 alone is expected to eventually house around 5.5 lakh Nvidia chips, a project estimated to cost tens of billions of dollars.
To support these large-scale plans, xAI has been aggressively raising funds in 2025. According to a Bloomberg News report, the company was earlier in talks to raise around $20 billion through debt and equity, partly to finance the purchase of Nvidia processors for Colossus 2.
The company has not officially responded to requests for comment regarding the reported expansion.