As the xAI project prepares to enter its second phase, some of the temporary gas turbines will be removed over the next two months.
An announcement from the Greater Memphis Chamber said the project reached “full operational capacity” on Thursday, May 1st, as it is now receiving 150 megawatts of grid power from Memphis Light, Gas and Water (MLGW) and the Tennessee Valley Authority (TVA).
The chamber said an additional 150 megawatts of Megapack Batteries have been added and will be used in case of an outage or “peak grid demand.”
Prior to connecting to the grid, the company used natural gas turbines as a source of power, which the chamber said are now being demobilized. As the project prepares for Phase II, half of the turbines will remain until a second substation is completed and ready to connect to the electric grid.
Officials said the substation is already in construction and is planned for fall 2025, to which the remaining turbines “will be relegated to a backup power role.”
“xAI is committed to Memphis through their sustainable environmental practices,” the chamber said in a statement. “The company is participating in the Demand Response program as outlined by MLGW and is exploring ways to provide energy to the grid for the benefit of the community, especially in emergency situations or other times of need.”
The gas turbines have been a source of controversy for community members and advocacy groups. Groups such as the Southern Environmental Law Center have criticized xAI for the amount of power these turbines have generated.
“Our analysis shows these turbines together have a power generating capacity of 421 megawatts — comparable to an entire TVA power plant — all constructed and operating unlawfully without any air permit in Southwest Memphis, a community that is profoundly overburdened with industrial pollution,” SELC said in a statement.
The Shelby County Health Department is currently in the process of deciding whether or not they will grant air permits for the gas turbines. Officials said the decision could take weeks, as their next steps are responding to comments made during their official public comment period.
Health department officials have noted that the permit is for 15 permanent turbines, and not 35, which SELC brought attention to in a letter to Michelle Taylor, director and health officer for the Shelby County Health Department.
The announcement of xAI’s connection comes after a resolution was passed on Monday by the Shelby County Board of Commissioners for an update to be given from both TVA and MLGW for the “remaining steps and time necessary to connect xAI to the local utility grid.”
