Colossus (data center)

Colossus is the name used by two data centers developed by xAI. Construction of Colossus 1 began in 2024 in Memphis, Tennessee; it became operational in July 2024. Colossus 1's primary purpose was to train the company's chatbot, Grok. In addition, Colossus provided computing support to the social-media platform X and to other projects of Elon Musk, such as SpaceX. In 2025, it expanded to neighboring Southaven, Mississippi across the Tennessee–Mississippi border. As of May 6, 2026, Anthropic has agreed to rent all compute capacity at the Colossus 1 data center. On June 5, Google agreed to rent access to 110,000 GPUs at the Colossus 2 datacenter in Southhaven from SpaceX, beginning October 2026 until June 2029, for $920 million a month. Background Colossus was launched in September 2024 at a former Electrolux site in South Memphis to train the AI language model Grok. Within 19 days of the project's conception, xAI was ready to begin construction. The site was chosen because the abandoned Electrolux building could be repurposed to expedite construction and its proximity to a nearby wastewater treatment facility provided a water source. As of February 2025, xAI plans to build an $80 million facility to process additional wastewater for use at the supercomputer. Both Dell Technologies and Supermicro partnered with xAI to build the supercomputer. It was originally powered by 100,000 Nvidia H100 graphics processing units (GPUs) and was constructed in 122 days. Three months after the first 100,000 GPUs were deployed, xAI announced that they had increased the system to 200,000 GPUs and that they intended to continue increasing the computer's processing power to 1 million GPUs. Choice of location xAI selected Memphis, in southwestern Tennessee, as the site for Colossus in part because an existing industrial facility allowed the project to proceed more quickly than constructing a new data center. Elon Musk was initially told that building a data center would take 18–24 months. The company instead searched for a vacant facility and selected the former Electrolux factory in Memphis. Electrolux opened the facility in 2012 and operated it for about eight years before closing it in 2020 after relocating operations to Springfield, Tennessee. The building covered 785,000 sq ft (72,900 m2) and had been purchased by Phoenix Investors in December 2023 for $35 million . Because the structure was already in place, work on the supercomputer could begin immediately rather than waiting for a new facility to be constructed. According to Forbes, xAI considered seven or eight other sites before selecting Memphis, and Musk finalized the decision to build in Memphis in about a week. The decision was finalized in March 2024, after which construction began. xAI publicly announced in June 2024 that Colossus would be built in Memphis. The building itself was not the only reason xAI selected Memphis. According to the Greater Memphis Chamber, the company chose the city because of its "reliable power grid, ability to create a water recycling facility, proximity to the Mississippi River and ample land". The city was also able to provide the large amounts of electricity and water needed to operate the supercomputer. At full capacity, the system was expected to require 150 megawatts of electricity and millions of gallons of water per day. The project also relied on partnerships with local and regional organizations including Memphis Light, Gas and Water (MLGW), Tennessee Valley Authority (TVA), the City of Memphis, and Shelby County. The city also provided financial incentives for the project. Environmental impact AI data centers consume large amounts of energy. At the site of Colossus in South Memphis, the grid connection was only 8 MW, so xAI applied to temporarily set up more than a dozen gas turbines (Voltagrid’s 2.5 MW units and Solar Turbines’ 16 MW SMT-130s) which would steadily burn methane gas from a 16-inch natural gas main. Aerial imagery in April 2025 showed 35 gas turbines had been set up at a combined 422 MW. These turbines have been estimated to generate about "72 megawatts, which is approximately 3% of the (TVA) power grid". The higher number of gas turbines and the subsequent emissions requires xAI to have a major source permit. In Memphis, xAI was able to avoid some environmental rules in the construction of Colossus, such as operating without permits for the on-site methane gas turbines because they are "portable". The Shelby County Health Department told NPR that "it only regulates gas-burning generators if they're in the same location for more than 364 days". However, in a January 2026 ruling, the EPA revised its New Source Performance Standard and announced that large methane gas turbines require permits even for temporary operations. In November 2024, the grid connection was upgraded to 150 MW, and some turbines were removed. Along with high electricity needs, the expected water demand is over five million gallons (over 18,927 m³) of water per day. While xAI has stated they plan to work with MLGW on a wastewater treatment facility and the installation of 50 megawatts of large battery storage facilities, there are currently no concrete plans in place aside from a one-page factsheet shared by MLGW. In April 2026, representing the NAACP, the Southern Environmental Law Center and Earthjustice sued the company. The lawsuit alleged that the company installed and operated a "Colossus Gas Plant" in Southaven which "emits significant amounts of harmful pollutants, including nitrogen oxides (“NOx”) and formaldehyde, which are tied to increases in asthma, respiratory diseases, heart problems, and certain cancers in persons exposed to them", "likely making the Colossus Gas Plant the largest industrial source of NOx in the greater Memphis area." The lawsuit alleged that the company had violated the United States Clean Air Act "in communities in the greater Memphis area with significant Black populations". In June 2026, the second Trump administration moved to intervene and to dismiss this case. The administration said that the lawsuit "threatens American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War’s military operations." The administration, signed by Stanley Woodward Jr., argued that the executive branch has "the right to unilaterally dismiss" a case brought under the Clean Air Act by a party other than the executive branch if the executive branch objects and cited Executive Order 14156 and Executive Order 14179. Community response The plan to build Colossus in Memphis was unknown to residents, City Council members, and environmental agencies. Many did not find out about the project until the day before, or the day of, as they watched the announcement on the local news. Keshaun Pearson, president of Memphis Community Against Pollution, stated that there is a historical lack of transparency and communication surrounding environmental issues in Memphis. Some community members in Memphis have expressed concern about the potential for additional air and water pollution caused by the supercomputer. In a letter to the Shelby County Health Department, the Southern Environmental Law Center stated the emissions from the turbines make the facility "...likely the largest industrial emitter of NOx in Memphis..." This is due to data supplied by the manufacturer showing that "...xAI emits between 1,200 and 2,000 tons of smog-forming nitrogen oxides (NOx)..." At a public Shelby County Commissioner's hearing on April 9, 2025, residents living near the site of Colossus voiced complaints about air quality, noting that they have chronic respiratory issues related to living in a polluted section of Memphis. One woman said she smells "everything but the right thing and the right thing is the clean air." Other residents voiced frustration that Brent Mayo, the senior xAI official responsible for building out xAI's infrastructure, did not attend the meeting to discuss community concerns. Keshaun Pearson also stated that "We're getting more and more days a year where it is unhealthy for us to go outside." People living near the site of Colossus have said they were not offered the opportunity for a public review of the plans, nor were they provided with information on how their community could potentially benefit. The community is also concerned about the strain on the power grid. Memphis's peak demand is around 3 GW. In November 2024, TVA approved xAI's request for access to more than 100 megawatts of power to Colossus which is supplied by MLGW. In December 2022, MLGW imposed (then rescinded) rolling blackouts during several days of extreme cold, straining the power grid. In a letter to the TVA, the SELC "urged the agency to 'prioritize Memphis families' access to reliable power over the 'secondary purpose' of serving xAI". Current progress In early December 2024, Ted Townsend detailed how the power of Colossus doubled in its processing capability. When it first went online in September 2024, it was using "100,000 Nvidia H100 processing chips". This initial launch demonstrated Colossus to be the largest supercomputer globally. The maximum power consumption increased from 150 to 250 MW. As of June 2025, the supercomputer consists of 150,000 H100 GPUs, 50,000 H200 GPUs, and 30,000 GB200 GPUs. Another 110,000 GB200 GPUs are to be brought online at a second data center, also in the Memphis area. The expansion of this supercomputer has already been discussed and will be the second phase of the project. xAI also plans to increase Colossus to 1 million GPUs. Because the supercomputer currently utilizes gas turbines for power, alongside 168 Tesla Megapack battery storage units. xAI is also looking to add more battery storage to help it decouple from the local energy grid. The expansion continued in March 2025 when xAI purchased a 1,000,000-square-foot (93,000 m2) site in the Whitehaven area of Memphis. xAI employee Brent Mayo said that the addition of this property "...ensures [xAI] remain at the forefront of AI innovation...in Memphis." The property was purchased for almost $80 million by CTC Property LLC, an affiliate of xAI. The Memphis City Council also approved xAI's wastewater recycling plant expansion. Plans for the expansion were initially revealed by the Tennessee Department of Environment and Conservation when preliminary plans for the facility were filed on September 18, 2024, for the project "...between xAI, Tennessee Valley Authority (TVA), and Nucor Steel..." At the time, xAI representatives detailed its estimated cost to be $78 million, which was to be privately funded. In March 2025, approval was officially granted for this expansion, including "...the sale of 13 acres for a wastewater recycling plant near the supercomputer in southwest Memphis." The final cost of the project was revealed to be $80 million for construction. See also List of the top supercomputers in the United States References External links Official website Memphis residents rally against Elon Musk's xAI project. Inside the World's Largest AI Supercluster xAI Colossus. Elon Musk finally reveals 'why Memphis' for xAI supercomputer.