Musk's xAI buys new buildings to expand “Colossus” supercomputing data center

The Zhitong Finance App learned that xAI, an artificial intelligence (AI) company owned by Elon Musk, is planning to expand its large-scale data center cluster in Memphis, Tennessee, USA. The billionaire posted on the X platform on Tuesday that the company has purchased a third building in the region. This move will increase its AI computing power to close to 2 gigawatts.

Currently, xAI has built a supercomputing data center called “Colossus” in Memphis, and construction of another “Colossus 2” data center of the same series is also being stepped up nearby. According to reports from relevant media earlier on Tuesday, citing property records and people familiar with the project, the new building Musk purchased this time is located in South Haven, Mississippi, next to the “Colossus 2” facility.

“xAI has taken over a third building and named it MACROHARDRR,” Musk said in a tweet on Tuesday afternoon. “This will make @xAI的训练算力提升至近2吉瓦.” It's worth mentioning that 1 gigawatt of electricity output is enough to meet the electricity needs of about 750,000 American households.

Musk has previously publicly stated that he plans to build the world's largest AI training supercomputing center. He revealed in a tweet earlier this year that “Colossus 2” will eventually be equipped with 550,000 Nvidia (NVDA.US) chips, and related hardware procurement costs will reach tens of billions of dollars.

To support this ambitious project, xAI will continue to increase its financing efforts in 2025. According to reports, the company began a new round of financing negotiations at the beginning of this year. It plans to raise 20 billion US dollars through a combination of debt and equity. Part of the funds raised will be used to purchase Nvidia processors for the “Colossus 2.”

As of now, xAI has not commented on related reports.