xAI's Atlanta data center with $700M in AI equipment to be operated with X: report

02/26/2025 10:48 AM

Elon Musk’s artificial intelligence startup, xAI, has been quietly setting up a major data center in Atlanta. The facility will be equipped with $700 million worth of AI hardware, including more than 12,000 Nvidia GPUs. 

The facility is a collaboration with Elon Musk’s social media platform X.

The Facility:

• The Atlanta facility is expected to house 12,448 GPUs.
• The vast majority of the chips will reportedly be comprised of Hopper generation H100 GPUs, while about 3% of the facility will be comprised of Nvidia A100 GPUs.
• As noted in a Business Insider report, X will be providing all the A100 GPUs and 11,000 H100 GPUs for the facility.
• Documents submitted to Develop Fulton, one of Atlanta’s economic development agencies, noted that the facility will be used to “develop and train artificial intelligence products.”
• Out of the $700 million in computing hardware that is being invested in the facility, $442 million is reportedly allocated to X, and $258 is allocated to xAI.
• It should be noted that while the Atlanta data center is massive in its own right, it is dwarfed by Colossus, xAI’s supercluster in Memphis. 
• Colossus, which Musk has called the world’s largest data center, is comprised of 200,000 GPUs–and it is still growing.

The Background:

• Initial reports about xAI’s Atlanta data center were posted by Fortune late last month.
• At the time, reports indicated that X and xAI had signed similar agreements with Develop Fulton. 
• The size and details of the facility were not reported then.
• As per Insider, Develop Fulton arranged a municipal bond process to finance $700 million in chips, cables, and other equipment that would be used for the facility.
• xAI and X have both been silent about the matter.

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