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This week, there has been a lot of talk about a temporary suspension of work at xAI’s wastewater treatment facility. I want to walk through where things stand with xAI and the wastewater facility and what we are doing to ensure commitments to Memphis are honored.
From the moment the broader xAI project was proposed, we began thinking critically about the scope and defining the terms. From the outset, we focused on what falls within the city’s sphere of influence: water and power usage. Our asks of them were clear. Partnership on a water treatment facility, and a commitment that power usage would not come at the expense of capacity for our residents and community.
We also made clear that the infrastructure required to support their operations would be paid for by the company, not by Memphis ratepayers or taxpayers. This approach was established in Memphis to ensure that growth does not come at the expense of our residents. I am proud that these projects were delivered without taxpayer funds or economic incentives, and even more proud of the Community Benefits Ordinance that governs the use of the tax dollars collected from xAI and other datacenters.
Although xAI’s initial plan did not include a wastewater treatment facility, when we proposed a partnership, they offered to build the facility themselves. In addition to committing to building this facility, they became paying customers of MLGW rather than relying on wells or drilling into the aquifer.
The colossus wastewater facility is part of this project solely because we asked for it.
Projects of this size do experience slowdowns. But Memphis cannot afford to treat this like a typical project. This facility is important to our community. It has been contemplated for over a decade, and previous efforts were not able to get it across the finish line. We are closer now than we have ever been. MLGW relies on the aquifer to serve our community, and this facility is designed to reduce industrial demand on that system by shifting major users like xAI and TVA off reliance on it over time. That is exactly why we pushed for it when xAI came into the market. And it is why we are not going to let progress stall.
Earlier this week, when we learned the project was being put on pause, I immediately went to work to ensure progress would continue.
 I spoke directly with company leadership and made our position clear. Commitments were made to this community, and we expect them to be honored. Shortly after our conversations, xAI publicly reaffirmed its plan to build the facility. And Elon followed with a similar post. Their response suggests that the project delay is due to sequencing, not an intent to permanently stall the project.
Their confirmation is a step, but we are in for the full marathon with this one. We will keep going until the facility is finished.
Completion is not optional. It is a requirement tied to how this project operates in Memphis.
The City and MLGW have more than delivered on our part. And we expect the same in return.
I will continue to stay engaged and use every lever at our disposal to ensure this project moves forward as promised.
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