- Elon Musk’s xAI supercomputer gets a power boost amid concerns
- Approval of 150 MW raises questions about grid reliability in Tennessee
- Local stakeholders express concern over growing data center demands
Elon Musk’s xAI supercomputer has taken a big step forward with the approval of 150 megawatts of power by the Tennessee Valley Authority (TVA).
This approval significantly increases the facility’s power supply, allowing it to run its 100,000 GPUs at the same time, a feat that was previously limited by available power.
However, this huge demand for energy has raised concerns among local stakeholders regarding the impact on the region’s power grid.
xAI expands energy usage
When xAI first launched its supercomputer in July 2024, it needed much more power than was available. Initially, there was only 8 MW of power available at the site, which was insufficient to meet the demands of the AI data center.
Musk’s team improvised using portable power plants to fill the gap. Over the summer, Memphis Light, Gas & Water (MLGW), a local utility, upgraded the existing substation to provide 50 MW of power, still well below the requirements to fully operate the facility.
The xAI supercomputer, dubbed the “Computing Gigafactory,” is designed to support Musk’s artificial intelligence company. To run all of its 100,000 GPUs simultaneously, the data center needs approximately 155 MW of power, meaning the new approval of 150 MW is enough to get close to full capacity.
With the approval of an additional 150 MW, MLGW and TVA have worked to assure local residents that increased xAI demand will not negatively impact power reliability in the Memphis area. According to MLGW CEO Doug McGowen, the additional power needed for xAI operations is still within the utility’s peak load forecast and measures are in place to purchase more power from TVA if necessary.
To meet these growing energy needs, many technology companies, including Amazon, Google, Microsoft and Oracle, are investing in alternative energy sources, particularly nuclear energy. However, it will be at least five years before nuclear energy solutions are ready for widespread deployment.
Until then, companies like xAI must rely on existing infrastructure to power their data centers, raising concerns about network stability and the ability to keep up with growing demands.
“We are alarmed that the TVA Board approved xAI’s proxy request without studying the impact it will have on local communities,” says Southern Environmental Law Center Senior Attorney Amanda Garcia.
“Board members expressed concern about the impact large industrial energy users are having on energy bills throughout the Tennessee Valley. TVA should prioritize families over data centers like xAI,” says García.
