Elon Musk’s artificial intelligence startup xAI has acquired a third building as it scales computing infrastructure for training large models near Memphis, Tennessee. Musk said the purchase would lift xAI’s training compute to almost 2 gigawatts, adding to the company’s Colossus supercomputer site. He did not disclose the building’s address, but called it “MACROHARDRR,” widely read as a Microsoft jab. The facility is expected to be converted into data center space, starting 2026, supporting xAI’s rivalry with OpenAI and Anthropic.
The expansion follows rapid buildout around Colossus, which Musk has described as one of the world’s largest AI training clusters. Reuters reported that xAI aims to equip the expanded site with more than one million GPUs, a scale intended to accelerate development of its Grok model and other systems. The Information has reported plans to transform the newly purchased warehouse into a data center, while Colossus 2 is also being developed nearby. Both projects sit close to a natural-gas power plant that xAI is building in the area, drawing attention from environmental groups concerned about emissions and electricity demand. Property records cited by Reuters confirmed the acquisition and timing. xAI did not immediately respond to a request for additional comment.
Why it matters
The purchase highlights how frontier AI competition is driving rapid data center expansion and escalating power, permitting, and sustainability constraints in the US.
Source Attribution
Source: Reuters | Adapted & summarized
Published on: 30 December 2025
Category: Technology
Region: USA
