Elon Musk’s artificial intelligence startup xAI has acquired a third building as part of its efforts to significantly expand computing infrastructure and accelerate the training of advanced AI models, according to comments made by Musk on Tuesday.
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In a post on X, Musk said the company had purchased a third facility, describing it simply as “x”, without revealing its exact location. The move highlights xAI’s growing ambitions to scale up its operations and compete more aggressively with major players such as OpenAI’s ChatGPT and Anthropic’s Claude.
xAI has bought a third building called MACROHARDRR. Will take @xAI training compute to almost 2GW.
Try @Grok. Download latest app.
— Elon Musk (@elonmusk) December 30, 2025
The expansion is closely tied to xAI’s flagship supercomputer cluster in Memphis, Tennessee, known as Colossus, which the company has described as the largest AI training cluster in the world. With the latest acquisition, xAI aims to increase its total training capacity to nearly two gigawatts of compute power, a scale that places it among the most energy-intensive AI operations globally.
According to a report by The Information, which cited property records and people familiar with the project, the newly acquired building is expected to serve as a third large data centre located outside Memphis. The report added that xAI plans to begin converting the warehouse into a full-scale data centre in 2026.
xAI is also reportedly planning to expand Colossus to house at least one million graphics processing units (GPUs), significantly increasing its ability to train larger and more complex AI models. Both the new facility and an upgraded cluster known as Colossus 2 are said to be located near a natural gas power plant that xAI is building, alongside access to other power sources.
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While the expansion strengthens xAI’s position in the fast-moving AI race, it has also attracted criticism from environmental groups. Activists have raised concerns about the massive energy consumption of data centres and their environmental footprint, particularly as demand for AI compute continues to surge worldwide.
xAI did not immediately respond to requests for comment regarding the environmental impact or further details of the expansion.