- Elon Musk’s xAI supercomputer gets a power boost amid concerns
- The approval of 150 MW raises questions about the reliability of Tennessee’s electric grid
- Local stakeholders are expressing concerns about the growing demand for data centers
Elon Musk’s xAI supercomputer has taken a big step forward with approval from the Tennessee Valley Authority (TVA) for 150 megawatts of power.
This approval significantly increases the facility’s power supply, allowing all 100,000 GPUs to be used simultaneously, a feat previously limited by available power.
However, this huge demand for energy has raised concerns among local stakeholders about the impact on the region’s electricity grid.
xAI extends power consumption
When xAI first launched its supercomputer in July 2024, it required significantly more energy than was available. Initially, only 8 MW 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, upgraded the existing substation to provide 50 MW of power, which still falls far short of the requirements to fully operate the facility.
The xAI supercomputer, nicknamed the ‘Gigafactory of Compute’, is designed to power Musk’s artificial intelligence company. To run all of its 100,000 GPUs simultaneously, the data center will need an estimated 155 MW of power, meaning the new approval for 150 MW is just enough to get close to full capacity.
With approval for an additional 150 MW, MLGW and TVA have worked to assure local residents that increased demand from xAI will not negatively impact power reliability in the Memphis region. According to MLGW CEO Doug McGowen, the additional power needed for xAI’s operations is still within the utility’s peak load forecast, and steps have been taken to purchase more energy 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, especially nuclear energy. However, it will take at least five years before nuclear energy solutions are ready for large-scale deployment.
Until then, companies like xAI must rely on existing infrastructure to power their data centers, raising concerns about the network’s stability and ability to meet increasing demands.
“We are alarmed that the TVA Board denied xAI’s request for power without studying the impact it will have on local communities,” said Amanda Garcia, senior attorney at the Southern Environmental Law Center.
“Board members expressed concern about the impact large industrial energy users are having on energy bills in the Tennessee Valley. TVA should prioritize families over data centers like xAI,” Garcia noted.