xAI details $90B+ Memphis AI buildout: 3.3GWh Tesla Megapacks, 1.2GW plant, water recycling
XFreeze · x · 2026-09-26
xAI has published a detailed look at its Mid-South AI infrastructure ecosystem:
- Over $90B invested across Memphis and Southaven, supporting 7,500 local jobs, anchored by Colossus and Colossus 2
- Colossus 2 uses 3.3 GWh of Tesla Megapacks — enough stored energy to power Memphis for roughly two hours
- A $360M clean-water recycling plant processing up to 10M gallons/day, plus $55M in two new electrical substations built at no cost to the local utility
- $60M+ in estimated local tax revenue for 2026 and a permanent 1.2 GW power plant under construction in Southaven
The takeaway: the grid, storage, dedicated generation and water recycling around the compute are becoming as massive as the compute itself.
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