Musk’s xAI Buys Third Data Center Site to Expand Computing Capacity
The expansion will bring xAI’s total computing capacity to nearly 2 gigawatts, supporting large scale model training as the company builds out data centre infrastructure near Memphis.
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Elon Musk on Tuesday said his artificial intelligence startup xAI has acquired a third data center site as the company ramps up computing capacity to train advanced AI models.
In a post on X, Musk said the newly acquired facility, called “MACROHARDRR,” would help raise xAI’s total compute capacity to nearly 2 gigawatts.
He did not disclose the location of the building. The name appears to reference Microsoft, which backs rival AI developers.
The acquisition adds to xAI’s growing footprint near Memphis, where the company operates its primary supercomputer cluster, known as Colossus.
The third site is planned as a large data center outside Memphis, The Information earlier reported, citing property records and a person familiar with the matter.
xAI is expanding Colossus to support at least one million graphics processing units, highlighting the scale of hardware required to train frontier AI systems. The company is also developing a second nearby facility, known as Colossus 2.
xAI reportedly plans to begin converting the newly acquired warehouse into a data centre in 2026.
The new site and Colossus 2 are located close to a natural gas power plant that xAI is building, along with access to other power sources.
