- Elon Musk's xAI supercomputer gets power boost amid concerns
- 150MW approval raises questions about grid reliability in Tennessee
- Local stakeholders voice concerns over growing data center demands
Elon Musk’s xAI supercomputer has taken a major step forward with approval for 150 megawatts of power from the Tennessee Valley Authority (TVA).
This approval significantly boosts the facility’s energy supply, enabling it to run all 100,000 of its GPUs concurrently, a feat previously limited by available power.
However, this massive energy demand has raised concerns among local stakeholders regarding the impact on the region's power grid.
xAI expands power use
When xAI first launched its supercomputer in July 2024, it required significantly more energy than was available. Initially, only 8MW of power was available at the site, which was insufficient to meet the demands of the AI data center.
Musk’s team improvised by using portable power stations to fill the gap. Over the summer, Memphis Light, Gas & Water (MLGW), a local utility company, upgraded the existing substation to provide 50MW of power, still far short of the requirements to fully operate the facility.
The xAI supercomputer, nicknamed the “Gigafactory of Compute,” is designed to support Musk’s artificial intelligence company. To run all of its 100,000 GPUs simultaneously, the data center needs an estimated 155MW of power, meaning the new approval for 150MW is just enough to get close to full capacity.
With approval for an additional 150MW, MLGW and TVA have worked to assure local residents that the increased demand from xAI will not negatively impact power reliability in the Memphis area. According to MLGW’s CEO Doug McGowen, the additional power needed for xAI’s operations is still within the utility’s peak load forecast, and measures are in place to buy more energy from TVA if necessary.
To meet these growing energy needs, many tech companies, including Amazon, Google, Microsoft, and Oracle, are investing in alternative energy sources, particularly nuclear power. However, it will take 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 grid stability and the ability to keep up with increasing demands.
“We are alarmed that the TVA Board rubberstamped xAI’s request for power 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 have on power bills across the Tennessee Valley. TVA should be prioritizing families over data centers like xAI," Garcia notes.
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