Memphis, United States - December 31, 2025 - Elon Musk’s artificial intelligence company xAI has acquired a third building near Memphis, Tennessee, as it accelerates the expansion of its flagship “Colossus” AI data center complex, underscoring the company’s ambition to build one of the largest AI training infrastructures in the world.
According to Reuters, the purchase was made through an xAI-linked entity and involves a large industrial property located just across the state line in Southaven, Mississippi, close to the company’s existing Colossus and planned Colossus 2 facilities. The move significantly expands xAI’s physical footprint in the region and positions the company to scale computing capacity far beyond its current levels.
Musk confirmed the acquisition in a post on his social media platform X, stating that the new building, referred to as “MACROHARDRR,” would push xAI’s training compute capacity to nearly 2 gigawatts. “xAI has bought a third building called MACROHARDRR.Will take @xAI training compute to almost 2 GW,” Musk wrote, highlighting the scale of power the company is targeting for AI model training.
The expanded Colossus campus is expected to house vast numbers of graphics processing units once fully built out, potentially exceeding one million GPUs. Such capacity would place xAI among a small group of organisations globally capable of operating AI infrastructure at gigawatt scale, comparable to the largest hyperscale data center operators.
The acquisition reflects xAI’s broader strategy of owning and operating its own data center infrastructure rather than relying primarily on third-party cloud providers. The Memphis-area sites are located near major power infrastructure, including gas-fired generation, which is intended to support the immense and continuous energy demands of large-scale AI training workloads.
Industry analysts have pointed out that data centers approaching the 2-gigawatt range represent a new class of AI infrastructure, with significant implications for regional power grids, cooling systems, and environmental oversight. Local and environmental groups have already raised concerns about emissions and water usage linked to the rapid expansion of AI compute facilities in the region, according to multiple media reports.
xAI has been aggressively scaling its operations throughout 2025 as competition intensifies among leading AI developers. The Colossus complex is central to the company’s efforts to train next-generation models that can compete with those developed by OpenAI, Anthropic, and Google. Further construction and retrofitting work at the newly acquired building is expected to begin in 2026, marking the next phase of xAI’s infrastructure build-out.
