The Memphis City Council has passed a final measure approving the sale of a 13-acre parcel of city-owned land for developing a water reuse plant by Elon Musk’s xAI affiliate, CTC Property LLC. According to Action News 5, the facility aims to transform treated wastewater from the adjacent City of Memphis plant into a cooling agent for the world's largest supercomputer and support two area industries.

Despite the council's decision, several Memphis residents publicly expressed their reservations. Concerns highlighted include the proposal's perceived hastiness and a lack of community engagement. "The people have been excluded," KeShaun Pearson, executive director of Memphis Community Against Pollution, stated, as per Commercial Appeal, during the public comment session. Additionally, some raised questions about the new facility's environmental and health implications.

The sale faced delays due to transparency concerns but moved forward after xAI agreed to pay $820,000 for the land, which reportedly is more than four times the land's value. Designed to alleviate pressure on the Memphis Sand aquifer significantly, the water reuse facility could reduce its draw by about 9%. Engineer Mark Carroll, who spoke with WREG, said this would lead to no pollution and decrease wastewater discharge into the Mississippi River.

Memphis City Council member Janika White commented on the plant's safeguarding role right before the vote: "Being that this supercomputer is here when we talk about safeguards, this greywater plant is just that. It’s a safeguard. It’s recycling water that would otherwise come from our aquifer," White expressed, as reported by WREG. However, Councilwoman Yolanda Cooper-Sutton cast a dissenting vote, supporting the water reuse facility concept but citing resident queries that remain unanswered.

The project is estimated to cost around $80 million. According to Action News 5, it's planned to be built near the current xAI site in Whitehaven and could be completed as early as next summer.