XAI says it will resume work on its water reuse facility in 2027

XAI says it will resume work on its water reuse facility in 2027

News ClipE&E News by POLITICO·Memphis, Shelby County, TN·6/24/2026

xAI has committed to resuming construction on a water recycling plant in Memphis, Tennessee, by the first quarter of 2027. This facility will support its local data center and also provide water for the Tennessee Valley Authority. The decision follows a meeting between Memphis Mayor Paul Young and SpaceX President Michael Nicolls, after work on the facility was paused two months ago.

watergovernment
xAI
Gov: City of Memphis, Tennessee Valley Authority

xAI, an artificial intelligence company, has committed to resuming construction on a water recycling plant in Memphis, Tennessee, by the first quarter of 2027. This facility, which was abruptly paused two months prior, is designed to clean city wastewater for reuse.

The recycled water will support xAI's data center in the Memphis area and also benefit the Tennessee Valley Authority (TVA), which operates a natural gas power plant in close proximity to the data center.

The decision followed a "productive meeting" between Memphis Mayor Paul Young and SpaceX President Michael Nicolls. xAI subsequently confirmed its collaboration with the City of Memphis on the project via a social media post.