Musk’s xAI Buys Building to Expand ‘Colossus’ Data Center

Elon Musk’s xAI is planning an expansion of its massive data center complex in Memphis, and has purchased a third building in the area that will bring the company’s artificial intelligence computing capacity to almost 2 gigawatts, the billionaire wrote Tuesday in a post on X.

Musk has already built one data center in Memphis, known as Colossus, and is currently constructing a second nearby site dubbed Colossus 2. The new building Musk posted about is in nearby Southaven, Mississippi, and adjoins the Colossus 2 facility, the Information reported earlier Tuesday, citing property records and a person familiar with the project.

“xAI has bought a third building called MACROHARDRR,” Musk posted Tuesday afternoon. “Will take @xAI training compute to almost 2GW.” A gigawatt is enough to provide electricity for about 750,000 US homes.

Musk has publicly discussed plans to build the world’s largest data center for AI training, and posted earlier this year that Colossus 2 will eventually have 550,000 chips from Nvidia Corp., which would cost tens of billions of dollars.

XAI has been fundraising aggressively in 2025 to finance its ambitious projects. The company was in talks to raise $20 billion in debt and equity earlier this year, in part to buy Nvidia processors for Colossus 2, Bloomberg News reported.

The company didn’t respond to a request for comment on the Information’s report.