xAI has acquired another building associated with its Colossus data center project, expanding the company’s growing footprint in the Memphis area to a third site.
Elon Musk disclosed the expansion in a post on X on December 30, 2025, stating that the added facility will increase total artificial intelligence computing capacity to nearly 2 gigawatts.
The company already operates one Memphis complex known as Colossus and is building a second site nearby, Colossus 2.
The newly acquired property is located in Southaven, Mississippi, adjacent to Colossus 2, according to earlier reporting from The Information that cited property records and a person familiar with the plans.
Together, the three locations form one of the largest privately built AI data center clusters in the U.S.
The facilities are designed to provide the power and computing resources necessary to train and serve xAI models at scale.
Musk has been vocal about the infrastructure demands of modern AI systems, emphasizing the need for power availability and accelerated build-out timelines as key constraints.
The Memphis-area buildout is part of xAI’s broader push to secure dedicated capacity for current and future models.
Why This Matters Today
The purchase underscores how quickly AI developers are moving to lock in power and physical space as demand for training and inference surges.
You are seeing companies assemble multi-site campuses rather than single data centers to meet the expected load.
It also highlights a shift in competitive focus from model announcements to underlying infrastructure.
Nearly 2 gigawatts of planned capacity places xAI among a small group of firms constructing hyperscale AI facilities tied directly to proprietary model development.
Our Key Takeaways:
- Elon Musk said xAI bought a third building tied to its Colossus data center effort, expanding its Memphis-area footprint to three interconnected sites.
- The new building, located in Southaven, Mississippi, adjacent to the Colossus 2 project, is expected to have a combined capacity of approximately 2 gigawatts of AI computing power.
- The expansion reflects intensifying investment in power- and compute-heavy AI infrastructure as firms race to support large model training and deployment.
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