The artificial intelligence startup xAI under Elon Musk is constructing the world’s biggest supercomputer in Memphis, Tennessee. The $400 million investment supports the construction of a facility that will contain 1 million GPUs to power xAI’s AI model Grok 3. The power grid serving the area lacks sufficient capacity to power the enormous facility.
The planning department of Memphis and Shelby County received 14 building permit applications from xAI between June 2024 and the present. The current Memphis power grid does not have sufficient capacity to serve xAI’s requirements, so the company needs to find alternative solutions. The Memphis Light Gas and Water utility has authorized 150 megawatts (MW) from the original 300 MW request made by xAI. Running 1 million GPUs would need more than 1 gigawatt of power, which exceeds the Memphis power grid capacity.
AI company xAI uses gas generators from Caterpillar Solar Turbines to extend its power capacity beyond 250 MW. The company submitted an application to install gas turbines at its facilities while it explores constructing its own power generation plant. The Tennessee Valley Authority (TVA) has declared a $16 billion investment to develop its power infrastructure network to support growing energy needs from xAI and other tech companies operating in Tennessee.
The xAI-affiliated company made an $80 million purchase of 186 acres of land that lies to the south of its initial site during March. The new site provides potential space for building extra infrastructure and energy capacity. Memphis authorities remain doubtful about the capability of the city’s power grid to support this massive project.
The increasing energy requirements of supercomputers powered by artificial intelligence create a power infrastructure challenge for developers.
