consumes more light than the city of San Francisco during rush hour

Being late to the AI ​​race means being left behind. We have the case of Apple that has just knelt and will use Google models to improve Siri. However, there is another opposite case with xAI, a company that was born in 2023when ChatGPT was already more than grown, and today it has made a place for itself among the largest, even overtaking them.

what has happened. xAI has just inaugurated Colossus 2, its new data center located in Memphis, Tennessee. For an AI company to open a data center is not surprising, given the pace at which they are being built, but in this case we are talking about the first AI training cluster of 1 gigawatt of power. To put it in context, it is more electricity than peak hour demand in the city of San Francisco. Elon Musk has boasted in X and has assured that by April they want to expand to 1.5 gigawatts.

Colossus 2, in figures. Colossus 1 has 230,000 GPUs and the new cluster has upped the ante with more than half a million GPUs and it is also one of the most expensive ever built. According to the report of EpochAIthe investment has reached 44,000 million dollars. The Microsoft Fairwater center is expected to surpass it in both investment and power, but is still in the construction phase.

Infrastructure yes, thank you. xAI may not have the best chatbot, but they want to have it and that means creating infrastructure faster than their rivals. With Colossus 1the company completed its construction in just 122 days, a milestone. Colossus 2 took a little longer (the project started in March 2025), but In just six months it already had 200MW of cooling capacity installedwhich according to Semianalysis is much faster than other megaprojects from Oracle and OpenAI.

Stepping on the accelerator. As we said, xAI was born in 2023, a time when there were already established companies in the sector. In the Semianalysis graph, you can see perfectly the acceleration they have given in training capacity. At the beginning of 2024 they were last in capacity and by September 2025 they had placed second behind OpenAI. Apart from the Grok controversies (that there have not been few) it has become clear that betting on infrastructure has been key for xAI catches up of his rivals.

Controversies. Feeding these mastodons is not an easy task and for this Musk’s company deployed up to 35 gas turbines with a capacity of more than 400 megawatts. The problem is that they pollute a lot and Memphis already has terrible air quality, so much so that it’s known as the “asthma capital.” Plus, he didn’t have permission to have that many turbines, so Musk had an idea: Colossus is next to the border with Mississippi, another state where emissions laws are more lax, so moved part of the turbines there.

Image | xAI

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