In a move that reflects the intersection of tech advancement and municipal infrastructure, Elon Musk's latest venture, xAI, is set to power up its supercomputer in the former Electrolux manufacturing facility in Southwest Memphis. This facility will utilize an impressive 150 megawatts of power at peak times to run what has been billed as the world's largest supercomputer. WREG reports that to meet this demand, Memphis Light, Gas & Water (MLGW) aims to boost a nearby electric substation's capacity to 50 megawatts by August 1, costing taxpayers a cool $760,000.
During a Memphis City Council meeting on Tuesday, MLGW CEO Doug McGowen assured council members that other utilities wouldn't be compromised to serve the tech giant. "We did all of our work to protect the rest of the customers, to make sure that everybody has the power they need, and clean water," McGowen said, according to WREG. The council, however, wasn't lacking in skepticism, with members raising concerns over the rapid nature of the developments and the current reliability of the grid, as per Action News 5.
Looking to pave the road for xAI, MLGW plans not only to bolster existing infrastructure but also to explore innovative cooling mechanisms using treated wastewater. This proactive approach is part and parcel of a broader intention to build out a greywater plant for widespread industrial use. The company anticipates using around 1 million gallons a day of water across two different cooling systems necessary for the supercomputer's operation, as Local Memphis elucidated.
There is an undercurrent of anticipation that this supercomputer project could inject the Memphis economy with well-paying technical jobs. In its footprint, xAI is offering compensation ranging from $100 to $200 an hour for certain positions. This economic promise seems to be a salve for the city that has had its share of challenges, as captured through the enthusiasm of those seeking to ensure the deal serves the Memphis community's best interests. "This needs to be a good deal for Memphis so we are not looking back and being regretful," Councilmember Pearl Eva Walker expressed, acknowledging the deal's high stakes, as reported by WREG.
The assurance of McGowen and mutual understanding between xAI and the Tennessee Valley Authority (TVA) to participate in a Demand Response program, which requires xAI to curtail power consumption during peak demand times, demonstrates a commitment to maintaining grid integrity. Furthermore, MLGW and xAI are negotiating the construction of an additional 150-megawatt substation to be operational by 2025, which xAI will fund upfront and later be reimbursed through a monthly margin allowance, as Action News 5 has indicated.
As this project transitions from concept to concretization, Memphis finds itself on the cusp of a technological revolution, one that insists not only on the potency of AI but also demands a reckoning with the city’s ready for the challenges of tomorrow's electrified horizons. The Greater Memphis Chamber highlighted the project's aggressive timeline and Memphis's unique ability to rapidly meet such fast-paced demands, as WREG has noted. As power plans are executed and infrastructure fortified, city officials remain engaged, attentive to the ramifications such a massive endeavor may have on the local community and its resources.
