XAI Plans Power-On of Colossus 2 Supercomputer in Shelby County

Elon Musk's xAI is advancing the deployment of its second Memphis-based supercomputer cluster, Colossus 2, which will include up to 550,000 GPUs and aims to be the first gigawatt AI training cluster. The facility at 5420 Tulane Road is expected to go online within weeks and will utilize diverse energy sources, including Tesla Megapacks, to ensure stable power during peak demand and prevent blackouts in Shelby County. xAI has purchased the nearby former Duke Energy natural gas power plant to support power needs, addressing concerns about the massive energy consumption of the data center. The company is working closely with local utilities such as Memphis Light, Gas and Water to manage infrastructure. Additionally, xAI is seeking $12 billion in debt financing to fund Colossus 2's expansion and is beginning to deploy its own semiconductor chips for AI training. These efforts reflect xAI's significant investment in AI infrastructure and its partnership with the Memphis community.