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Colossus (data center)

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Colossus is the name used for a cluster of data centers developed by xAI (later SpaceX Super Intelligence) in the Memphis, Tennessee–Southaven, Mississippi area. The original facility, Colossus 1, began construction in 2024 at a former Electrolux plant in South Memphis and became operational in July–September 2024.[1] Its primary purpose was to train the company's chatbot Grok[2]

A second major facility, Colossus 2 (also referred to as Macrohard), was developed beginning in 2025 in the Whitehaven area of Memphis, with associated power generation across the state line in Southaven, Mississippi. Additional nearby buildings (sometimes called Minihard and Macrohardrr / Colossus 3) expanded the cluster. As of mid-2026 the combined sites provided on the order of 1 gigawatt of AI compute capacity.[3]

In May 2026 Anthropic agreed to rent essentially all compute capacity at Colossus 1.[4] On June 5, 2026, Google agreed to rent access to approximately 110,000 GPUs from SpaceX beginning October 2026 through June 2029 for $920 million per month; the specific facility was not publicly identified by SpaceX.[5] Training of newer Grok models shifted primarily to Colossus 2 and related sites.

Colossus 1

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Colossus 1 was built in a former Electrolux factory in South Memphis.[6] Construction of the initial cluster of approximately 100,000 Nvidia H100 GPUs was completed in 122 days; the system went live in mid-to-late 2024.[7][8] Capacity was later expanded; Epoch AI estimates the site's chips now include about 150,000 H100s, 50,000 H200s and 30,000 B200s.[9] Partners included Dell Technologies and Supermicro.

Because the local grid connection was initially limited (~8 MW, later upgraded toward 150 MW), xAI deployed temporary natural-gas turbines and Tesla Megapack battery systems. Local residents protested the turbines at public hearings over air quality, and the Shelby County Health Department issued a permit for 15 of them on July 2, 2025.[10] The Southern Environmental Law Center, on behalf of the NAACP, notified xAI in June 2025 of its intent to sue under the Clean Air Act, alleging the company had installed dozens of turbines without permits.[11]

Colossus 2 and cluster expansion

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In February 2025 an xAI affiliate purchased a large warehouse and adjacent parcels in Whitehaven, Memphis, for roughly $80 million. This became the core of Colossus 2 (branded Macrohard on the rooftop). The first major GPU cluster (~110,000 Nvidia GB200-class processors, ~210 MW) came online around January 2026 after a reported build of about 91 days; a subsequent cluster of GB300-class processors followed. By mid-2026 the site held on the order of 300,000–350,000+ GPUs and several hundred megawatts of IT load, with further expansion under way.[3] By late September 2026, 440,000 GB300 GPUs were in use, with a further 660,000 GPUs expected to come online by the end of 2026.[12]

Power for Colossus 2 and nearby buildings has relied heavily on a gas-turbine plant just across the state line in Southaven, Mississippi, on the former Duke Energy site on Stanton Road, owned by xAI subsidiary MZX Tech.[13][14] Temporary/mobile turbines were installed and expanded (dozens of units, eventually reported in the 50–70 range), generating substantial NOx and other emissions. A permanent ~1.2 GW simple-cycle plant (41 turbines) received a Mississippi Prevention of Significant Deterioration permit in March 2026; temporary units were scheduled for phased removal as the permanent plant came online (target completion of removal by mid-2027 under a 2026 agreement with state regulators).[15][16]

Additional nearby facilities form part of the broader cluster:

  • A denser "Minihard" building under construction at ~5414 Tulane Road.
  • A site at 2400 Stateline Road West in Southaven (sometimes called Macrohardrr or Colossus 3), acquired later in 2025.

Together the Memphis–Southaven sites have been described as approaching or exceeding 1 GW of AI compute power, with continued expansion planned. After the Anthropic arrangement for Colossus 1, newer model training and many internal workloads moved to Colossus 2 and related buildings. External customers (including Anthropic on Colossus 1 and later deals involving Google, Reflection AI, and others) have also used capacity from the cluster.

Environmental impact and community response

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Rapid deployment relied on temporary gas turbines while grid and permanent generation were incomplete. In the Memphis area this raised concerns about air quality (NOx, formaldehyde, smog), water demand (millions of gallons per day), and strain on the local grid. Shelby County initially treated many units as portable/temporary and therefore outside certain permitting rules; later federal guidance and state actions tightened requirements.

In April 2026 the NAACP, represented by the Southern Environmental Law Center and Earthjustice, sued xAI / MZX Tech in federal court in Mississippi, alleging operation of the Southaven "Colossus Gas Plant" without required Clean Air Act permits and disproportionate impact on nearby Black communities. The suit sought injunctions and penalties. In June 2026 the U.S. Department of Justice under the second Trump administration moved to intervene and dismiss the case, arguing it threatened national, economic, and energy security (including support for military use of AI). Temporary turbines continued to operate while a permanent plant was built; a 2026 agreed order with Mississippi regulators set a timeline for their removal by July 2027.[15][17]

Local residents and environmental groups criticized the lack of early public notice, potential health impacts, and prioritization of data-center power over residential reliability. Plans for an $80 million wastewater / greywater recycling plant near Colossus 1 were paused in 2026 while the company focused on completing and stabilizing Colossus 2.

Current status (as of mid-2026)

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  • Colossus 1: Largely leased to Anthropic; older H100/H200-heavy configuration.
  • Colossus 2 / Macrohard and nearby buildings: Primary site for newer Grok training and internal workloads; GB200/GB300-class systems; hundreds of MW of IT load with continued build-out.
  • Power: Mix of temporary turbines (being phased out), permanent gas plant under construction in Southaven (~1.2 GW permitted), Tesla Megapacks, limited grid interconnection, and exploratory solar.
  • Customers / users: SpaceXAI (Grok and internal), Anthropic (Colossus 1), Google, Reflection AI, and others via capacity leases.
  • Further expansion of the Memphis–Southaven cluster and longer-term interest in orbital / space-based compute have been discussed by the company.

See also

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References

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  1. ↑ Skidmore, Zachary (May 22, 2025). "xAI deploys 168 Tesla Megapacks to power its Colossus supercomputer in Memphis". Data Center Dynamics. Archived from the original on August 7, 2026. Retrieved August 14, 2026.
  2. ↑ Kerr, Dara. "How Memphis became a battleground over Elon Musk's xAI supercomputer". NPR. Archived from the original on April 13, 2025. Retrieved April 26, 2025.
  3. 1 2 "Colossus 2". Epoch AI. Archived from the original on August 14, 2026. Retrieved August 14, 2026.
  4. ↑ Howley, Daniel. "Anthropic to rent all AI capacity at SpaceX's Colossus data center". Yahoo Finance. Archived from the original on May 6, 2026. Retrieved May 6, 2026.
  5. ↑ Conger, Kate (June 6, 2026). "SpaceX Has $30 Billion Deal to Provide Google With A.I. Computing Power". The New York Times. ISSN 0362-4331. Retrieved July 14, 2026.
  6. ↑ Strebig, Neil (June 5, 2025). "Unpacking how Elon Musk's xAI supercomputer project in Memphis unfolded over the past year". The Commercial Appeal. Archived from the original on January 6, 2026. Retrieved October 31, 2026.
  7. ↑ "Colossus". x.ai. Archived from the original on April 18, 2025. Retrieved April 25, 2025.
  8. ↑ Hetzner, Christiaan. "Elon Musk's just fired up 'Colossus'—the world's largest Nvidia GPU supercomputer". Fortune. Archived from the original on February 4, 2025. Retrieved April 23, 2025.
  9. ↑ "Colossus 1 | AI Data Centers". Epoch AI. August 21, 2026. Archived from the original on September 14, 2026. Retrieved August 22, 2026.
  10. ↑ Kolodny, Lora (July 3, 2025). "Musk's xAI scores permit for gas-burning turbines to power Grok supercomputer in Memphis". CNBC. Retrieved October 31, 2026.
  11. ↑ "Elon Musk's xAI threatened with lawsuit over air pollution from Memphis data center". Southern Environmental Law Center. June 17, 2025. Retrieved October 31, 2026.
  12. ↑ "Archived copy". Archived from the original on September 26, 2026. Retrieved September 26, 2026.{{cite web}}: CS1 maint: archived copy as title (link)
  13. ↑ Strebig, Neil (July 30, 2026). "SpaceXAI says temporary turbines are out, with permanent ones on the way". The Commercial Appeal. Archived from the original on August 1, 2026. Retrieved October 31, 2026.
  14. ↑ Gooding, Matthew (July 31, 2026). "Musk confirms fourth SpaceXAI data center in Memphis, company starts removing 'illegal' gas turbines". Data Center Dynamics. Retrieved October 31, 2026.
  15. 1 2 Taft, Molly (May 12, 2026). "xAI Adds 19 New Gas Turbines Despite Ongoing Lawsuit". Wired. Retrieved August 14, 2026.
  16. ↑ "SpaceX Agrees to Remove Temporary Gas Turbines at Colossus Data Center By 2027". Gizmodo. August 1, 2026. Archived from the original on August 14, 2026. Retrieved August 14, 2026.
  17. ↑ Zraick, Karen; Tabuchi, Hiroko (June 16, 2026). "D.O.J. Seeks to Halt Air Pollution Lawsuit Against xAI Data Center". The New York Times.
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35°03′36″N 90°09′23″W / 35.06000°N 90.15639°W / 35.06000; -90.15639

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