xAI’s new facility will save Memphis 5 billion gallons of water annually

Max Headroom 2025.10.13 3 min read

Elon Musk’s artificial intelligence startup, xAI, has officially broken ground on its $80 million wastewater treatment facility in Memphis, Tennessee. The project aims to reduce strain on the Memphis aquifer by 9% and repurpose 20% of wastewater from the nearby Memphis T.E. Maxson wastewater facility that would otherwise flow back into the Mississippi River.

A major step towards sustainability

City officials, including Councilman J. Ford Canale and Memphis Chamber of Commerce CEO and President Ted Townsend, joined xAI staff at the October 10 ceremony. The project was described as a long-needed solution for the region as it will have a treatment capacity of 13 million gallons daily, which would then be used for industrial cooling use xAI and the Tennessee Valley Authority (TVA).

This means that the facility will help conserve 5 billion gallons of potable water annually, easing demand on Memphis’ primary water system. At these levels, xAI Memphis noted that its wastewater treatment facility will feature the largest ceramic membrane MBR in the world, using 13,000 membrane modules that collectively span over 900,000 square feet, roughly the size of 16 football fields.

Construction permits have been secured for the pump station, while the main operations permit from the Tennessee Department of Environment and Conservation remains under review.

Today we broke ground on our wastewater treatment facility in Memphis:

– 13 MGD (million gallons per day) treatment capacity (approx. 20% of Maxson discharge)
• Largest ceramic membrane MBR in the world

– 13,000 membrane modules—stacked together they would be taller than 4… pic.twitter.com/iTiXfteUKW

— xAI Memphis (@xAIMemphis) October 10, 2025

A privately funded push

The wastewater treatment facility represents a rare privately funded water reclamation initiative, with xAI covering construction costs, as noted in a Yahoo News report. The company filed preliminary plans through its affiliate CTC Property LLC in 2024, hinting at the startup’s long-term commitment to sustainable infrastructure around its growing Memphis operations. TVA CEO and President Don Moul shared his excitement for the project.

“This is a big day for Memphis, Tennessee. This initiative not only reduces our need to purchase water from MLGW for our nearby Allen Combined Cycle Plant, but it also eases demand on the region’s potable water system. By recycling water for cooling purposes, we’re helping to preserve drinking water for the community and advancing a solution that benefits both the environment and the Greater Memphis area,” he said.

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