DATACENTERS colossus supercomputer
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Colossus (data center)
retrieved 2026-07-11
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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.