Data centre cluster in Tennessee strengthens xAI’s compute ambitions

xAI is expanding its AI infrastructure in the southern United States after acquiring another data centre site near Memphis. The move significantly increases planned computing capacity and supports ambitions for large-scale AI training.

The expansion centres on the purchase of a third facility near Memphis, disclosed by Elon Musk in a post on X. The acquisition brings xAI’s total planned power capacity close to 2 gigawatts, placing the project among the most energy-intensive AI data centre developments currently underway.

xAI has already completed one major US facility in the area, known as Colossus, while a second site, Colossus 2, remains under construction. The newly acquired building, called MACROHARDRR, is located in Southaven and directly adjoins the Colossus 2 site, as previously reported.

By clustering facilities across neighbouring locations, xAI is creating a contiguous computing campus. The approach enables shared power, cooling, and high-speed data infrastructure for large-scale AI workloads.

The Memphis expansion underscores the rising computational demands of frontier AI models. By owning and controlling its infrastructure, xAI aims to secure long-term access to high-end compute as competition intensifies among firms investing heavily in AI data centres.

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