On December 31, 2025, multiple outlets reported that Elon Musk’s startup xAI has acquired a third building near Memphis, dubbed “MACROHARDRR,” to expand its Colossus AI data center complex. Musk said the expansion will push xAI’s training compute capacity toward nearly 2 gigawatts to support next-generation AI models.
This article aggregates reporting from 7 news sources. The TL;DR is AI-generated from original reporting. Race to AGI's analysis provides editorial context on implications for AGI development.
xAI’s third “MACROHARDRR” building outside Memphis is not just another data center; it’s a visible bet that compute, not just algorithms, will bottleneck the next phase of AI progress. A 2‑gigawatt campus—if fully realized—puts Colossus in the same energy class as large nuclear plants, signaling that Musk intends xAI to compete head-on with OpenAI, Google, and Anthropic on sheer training firepower.([econotimes.com](https://www.econotimes.com/Elon-Musks-xAI-Expands-Supercomputer-Infrastructure-With-Third-Data-Center-to-Boost-AI-Training-Power-1729837))
For the race to AGI, this escalation matters because it reinforces a dynamic where a small club of firms control the largest compute budgets and thus the leading-edge models. That can compress timelines by enabling more frequent and larger training runs, but it also hardens the capital and infrastructure moat around frontier AI. At the same time, siting Colossus next to dedicated gas generation and building toward multi‑gigawatt scale sharpens emerging political and environmental pushback around AI’s energy footprint.([econotimes.com](https://www.econotimes.com/Elon-Musks-xAI-Expands-Supercomputer-Infrastructure-With-Third-Data-Center-to-Boost-AI-Training-Power-1729837)) The competitive implication: every serious AGI contender now needs not only great models but an articulated plan for multi‑GW, grid‑integrated compute—plus a story about why local communities and regulators should tolerate it.



