xAI purchased more than 25 million gallons of water from Memphis Light, Gas, and Water (MLGW) in March to power the Colossus 1 data center, according to a local advocacy group.
Protect Our Aquifer (POA) said the company has increased its water usage, now totaling 812,502 gallons pumped from the Memphis Sand Aquifer every day. The group expects that demand to be higher in summer months.
“If companies are making multi-billion dollar commitments tied to xAI’s facility, then Memphis residents deserve transparency and public accountability,” POA said.
In April, Memphis Light, Gas, and Water (MLGW) president and CEO Doug McGowen told Memphis City Council members that Elon Musk’s parent company was “committed” to building the wastewater treatment facility for its Memphis supercomputer.
This announcement followed promises to build a facility to cool its data center, however the company announced that it was “prioritizing…more immediate projects at the site” and would continue to use Memphis Sand Aquifer water instead.
McGowen told council members that the project cost went from $80 million to around $200 million.
POA also found that xAI pays $0.19 per 100 gallons of water from MLGW while regular customers pay $0.32.
POA also found that AI company Anthropic will pay xAI and SpaceX close to $1.25 billion per month to use Colossus 1 through 2029.
Through an SEC filing, the organization found that the company powering Claude AI will “lease computing capacity” at the facility located at 3231 Paul R. Lowry Road.
“This matters for Memphis because it signals that xAI’s infrastructure footprint here is not slowing down — our land, power, and water are becoming even more financially significant,” POA said in a statement.
As a result of these findings, POA is asking residents to call on Memphis Mayor Paul Young and the Memphis City Council to hold Space X accountable and require them to hold a public hearing. POA is demanding answers on aquifer protections, future Colossus and AI expansions, the status of the delayed water reuse plant, and more.
Advocates are requesting xAI, MLGW, the city’s Public Work Division, the Shelby County Health Department, and the Grounwater Control Board be present at the public forum to address transparency concerns with community input.
POA along with other environmental advocacy groups including Young, Gifted & Green, Sierra Club Chickasaw Group, and Memphis Community Against Pollution (MCAP) sent a letter to Young and Shelby County Mayor Lee Harris to hold the hearing to “restore even a modicum of public trust in the city, county, and City Council’s dealings with xAI.”
“Decisions with generational impacts on our drinking water should not happen behind closed doors,” POA SAID. “Let’s work together to ensure accountability, transparency, and a future that protects and prioritizes oyr community, the Memphis Sand Aquifer, and all who rely on it.”