Memphis residents oppose Musk's AI supercomputer over power concerns

A group of Memphis residents has written to local authorities expressing concern about Elon Musk’s plans to build the world’s largest supercomputer for his xAI startup in the city.

Announced in June, xAI’s “gigafactory of compute” will provide the startup with its own dedicated supercomputer to run its AI training to reduce its reliance on X and Tesla servers.

However, a non-profit group of local residents, called the Southern Environmental Law Center (SELC), is concerned with the planned supercomputer facility, calling the proposed site “harmful.”

In a letter to Tennessee Valley Authority (TVA), the state’s grid operator, the group is worried the company lacks the grid infrastructure and power to xAI’s services while maintaining electricity services for the community.

The group argues that the xAI facility is already demanding 150 megawatts of power by the end of 2024, which could instead power 100,000 homes.

“We strongly urge the Board to consider the risk of serious harm to our community posed by xAI and to deny permission to TVA and Memphis Light, Gas & Water (MLGW) to provide power to the xAI facility,” the letter reads.

Residents are concerned that the local grid operator lacks the generating and transmission capacity to serve xAI.

The letter cites an October 2023 notice filed by TVA that it identified a reliability concern in the Memphis-area grid — some nine months before xAI announced intentions to set up shop in the city.

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