xAI Colossus 2 becomes world's largest AI data center

xAI’s Colossus 2 data center in Memphis, Tennessee, has become the world’s largest AI data center, reaching approximately 946 MW of IT power capacity. Operational as of September 3, 2026, the facility utilizes Nvidia’s B200 and B300 chips to house an estimated 1,112,000 H100-equivalent compute units. The project represents a $35.8 billion capital investment. To accelerate deployment, xAI utilized temporary natural gas turbines while awaiting permanent grid connections, a strategy that has faced regulatory and environmental scrutiny. A permanent 1.2 GW gas power plant is expected by mid-2027.

Beyond training its own Grok system, xAI is acting as an infrastructure provider, leasing compute capacity to companies including Anthropic, Cursor, and Google. Projections suggest the facility could scale to 1,531 MW by early 2027.

The rapid expansion of such facilities has triggered significant public and political backlash due to high energy and water consumption. In response, the Build American AI campaign, funded by the political action committee Leading the Future, has launched a multimillion-dollar advertising blitz to promote data center construction in key battleground states like Kansas, Ohio, and Wisconsin. This movement coincides with political rhetoric from Donald Trump, who characterized opposition to data centers as a hindrance to economic growth.