Southaven, Mississippi, December 31, 2025
Elon Musk’s xAI has acquired a new data center named ‘MACROHARDRR’ in Southaven, Mississippi, significantly boosting its AI training capacity. This latest addition increases xAI’s computing power to nearly 2 gigawatts, following the establishment of two previous centers. The facility is strategically placed adjacent to another data center, enhancing technological infrastructure in the region. This expansion is projected to drive economic growth and attract further investment into the Memphis area, reinforcing it as a hub for AI innovation.
Southaven, Mississippi
xAI Expands AI Infrastructure with New Data Center Acquisition in Southaven
Elon Musk’s artificial intelligence company, xAI, has acquired a third facility in Southaven, Mississippi, to enhance its AI training capabilities. The new data center, named “MACROHARDRR,” is set to increase xAI’s training compute capacity to nearly 2 gigawatts (GW). This expansion follows the establishment of two previous data centers, Colossus One and Colossus Two, in the Memphis area. The latest acquisition underscores xAI’s commitment to advancing AI technology and infrastructure in the region.
Details of the Acquisition
Property records indicate that an xAI subsidiary purchased an 810,000-square-foot warehouse in Southaven earlier this month. The facility is located adjacent to xAI’s existing Colossus Two data center, situated just across the state line in Memphis. A new road connecting Colossus Two and the site of the third data center has been constructed in recent weeks. Elon Musk announced the acquisition on social media, highlighting the significant increase in training compute capacity. The new facility is expected to support xAI’s growing AI operations and contribute to the development of its AI models, including Grok.
Background on xAI’s Expansion
xAI has been rapidly expanding its AI infrastructure in the Memphis area. In March 2025, the company acquired a 1 million-square-foot property in Southwest Memphis to support its existing data center operations. The Colossus supercomputer, developed by xAI, is central to the company’s AI initiatives, aiming to advance AI technology and maintain a competitive edge in the industry. The strategic location of these facilities near power sources and existing infrastructure facilitates efficient operations and scalability for xAI’s ambitious AI projects.
Implications for the Region
The expansion of xAI’s data centers in the Memphis and Southaven areas is expected to have significant economic and technological impacts. The increased capacity for AI training and development may attract additional tech companies to the region, fostering innovation and economic growth. Additionally, the proximity to power plants and existing infrastructure positions the area as a hub for advanced technology and AI research, potentially leading to job creation and increased investment in the local economy.
Key Features of xAI’s New Data Center Acquisition
| Feature | Details |
|---|---|
| Facility Name | MACROHARDRR |
| Location | Southaven, Mississippi |
| Size | 810,000 square feet |
| Proximity | Adjacent to Colossus Two data center in Memphis, Tennessee |
| Training Compute Capacity | Nearly 2 gigawatts |
| Purpose | Support development of AI models, including Grok |
Conclusion
The strategic investment by xAI in Southaven is a testimony to the growing tech landscape in the region. This expansion not only enhances xAI’s capabilities but also holds the promise of attracting further investment, jobs, and innovation. As local entrepreneurs and businesses continue to demonstrate resilience and creativity, the economic potential for both Southaven and Memphis remains bright. Supporting local initiatives and remaining engaged with our community can propel this growth even further.
Frequently Asked Questions (FAQ)
What is xAI’s latest acquisition?
xAI has acquired a third facility in Southaven, Mississippi, named “MACROHARDRR,” to enhance its AI training capabilities.
How will this acquisition impact xAI’s operations?
The new data center is expected to increase xAI’s training compute capacity to nearly 2 gigawatts, supporting the development of its AI models, including Grok.
Where is the new facility located?
The facility is located in Southaven, Mississippi, adjacent to xAI’s existing Colossus Two data center in Memphis, Tennessee.
What is the significance of this expansion for the region?
The expansion is expected to attract additional tech companies, foster innovation, and contribute to economic growth in the Memphis and Southaven areas.
What is the Colossus supercomputer?
The Colossus supercomputer, developed by xAI, is central to the company’s AI initiatives, aiming to advance AI technology and maintain a competitive edge in the industry.
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Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
