Musk's xAI Acquires Third Building to Expand Colossus AI Data Center Complex
Elon Musk's xAI has purchased a third building called MACROHARDRR outside Memphis to expand its Colossus AI data center complex, targeting nearly 2 gigawatts of computing capacity with at least 1 million GPUs. The facility conversion will begin in 2026, strategically located near existing infrastructure and power sources to enhance xAI's competitive position against OpenAI and Anthropic.
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Elon Musk's artificial intelligence company xAI has acquired a third building to significantly expand its data center operations, marking another major step in the billionaire's ambitious AI infrastructure development plans. The expansion will bring the company's total artificial intelligence computing capacity to nearly 2 gigawatts.
Strategic Expansion Details
Musk announced the acquisition on Tuesday, December 31, through a post on X, revealing that xAI has purchased a building called MACROHARDRR. The facility is planned as a supersized data center outside Memphis, Tennessee, strategically positioned near the company's existing Colossus infrastructure.
| Facility Details: | Information |
|---|---|
| Building Name: | MACROHARDRR |
| Location: | Outside Memphis, Tennessee |
| Total Computing Capacity: | Nearly 2 gigawatts |
| Construction Timeline: | Data center conversion starts 2026 |
| Target GPU Capacity: | At least 1 million graphics processing units |
Colossus Data Center Complex
The new acquisition expands xAI's existing data center infrastructure in the Memphis area. The company currently operates the original Colossus facility in Memphis, which is touted as the world's largest supercomputer cluster, and is constructing the second site, Colossus 2, nearby. This multi-facility approach demonstrates xAI's commitment to building substantial AI training capabilities to compete more effectively with industry leaders like OpenAI's ChatGPT and Anthropic's Claude.
xAI plans to expand its supercomputer Colossus to house at least 1 million graphics processing units. Both the new data center and Colossus 2 are strategically located close to a natural gas power plant that xAI is building in the area, along with access to other power sources.
Infrastructure and Environmental Considerations
The startup plans to begin converting the newly purchased warehouse into a data center in 2026. The substantial infrastructure development reflects xAI's vision for training increasingly advanced AI models through massive computational resources.
| Development Timeline: | Details |
|---|---|
| Current Status: | Building acquired |
| Conversion Start: | 2026 |
| Power Infrastructure: | Natural gas plant and additional sources |
| Strategic Goal: | Compete with ChatGPT and Claude |
However, the expansion of AI infrastructure has drawn criticism from environmental activists, as data centers consume large amounts of energy. The combination of real estate acquisitions, advanced chip procurement, and facility construction represents a comprehensive approach to building next-generation AI training capabilities, reinforcing xAI's position as a major player in the artificial intelligence infrastructure space.
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