The Tennessee Valley Authority approved a request Thursday to supply electricity to the xAI supercomputer data center that Elon Musk founded in Memphis.
The decision, reached during TVA’s board meeting, drew sharp criticism from environmental and community advocates in West Tennessee who said the additional energy load could exacerbate air pollution and damage the health of residents.
The “Colossus” xAI facility, which powers the artificial intelligence chatbot Grok, currently has an energy demand equal to the needs of approximately 100,000 homes. That load is satisfied in part by onsite gas turbines. TVA’s approval was the last major regulatory hurdle to reach xAI’s requested power load of 150 megawatts.
TVA’s decision comes as interest in data centers is surging across the country. Utilities, grid planners and climate advocates are closely following plans that may cause electricity demand to boom in the years ahead, creating a need for additional power generation and power lines. Technology companies are in the middle of the debate.