Fact V. Fiction

Providing our neighbors with fact-based information

Facts are important in any conversation, so we're including the following information so you can hear it from us directly. In a nutshell, we want to set the record straight because you deserve the facts. As engineers and problem solvers, our commitment extends beyond our own operations. We're a company grounded in sustainability, working to attract long-term, responsible investment across all sectors and to help position Memphis to thrive in this new economy. To that end, we're addressing some of the misleading claims that have circulated about SpaceXAI and the Colossus facility.

How We Are Powered: Fact vs Fiction

SpaceXAI housed temporary natural gas turbines onsite at Electrolux to help power the facility while establishing a connection to the local electric grid. All temporary turbines have now been permanently removed from the Electrolux site.

SpaceXAI applied for a permit for 15 permanent turbines in January 2025, which was approved by the Shelby County Health Department on July 2, 2025. However, SpaceXAI will likely only need 12 permanent turbines to remain at the Electrolux site, which will eventually only be used for backup power in the case of emergencies.

SpaceXAI will not be using 90 natural gas turbines or anything close to that number at its next data center. In fact, there are no current plans to site any turbines at SpaceXAI’s next data center in Memphis.

SpaceXAI is in the process of securing additional power from the grid that protects the reliability of the system. The 12 permitted turbines onsite will eventually serve only as back-up power.

SpaceXAI is investing $80 million in a state of the art water recycling plant – the Colossus Water Recycle Plant. This facility will process up to 13 million gallons of wastewater daily, eliminating the need to draw from the Memphis Aquifer for industrial use. Currently scheduled to begin operations in 2026, the plant will conserve approximately 4.745 billion gallons of water annually.

The 12 natural gas turbines that are properly permitted for Electrolux will be equipped with state-of-the-art emissions control technology. Specifically, the turbines will have SoLoNOx dry low emissions (DLE) technology and selective catalytic reduction (SCR) systems that lower nitrogen oxides (NOx) to 2 ppm. This will make SpaceXAI the lowest emitting facility of its type in the country.

The investments in onsite power generation and batteries means SpaceXAI will completely disconnect from the grid when it is strained or during emergencies, to ensure the community gets the power they need, when they need it. This is agreed upon in a contract with the Tennessee Valley Authority and Memphis, Light, Gas and Water. Moreover, well over 200 Tesla Megapack Batteries for stored energy backup have been integrated into Colossus, to help the system ride through outages, or demand response events during times of peak grid demand.

SpaceXAI has spent $35 million to construct a substation to support MLGW, and has committed an additional $20 million to build another substation. Transmission system upgrades have been completed at SpaceXAI’s expense. SpaceXAI has rolled up its sleeves and managed the construction of this infrastructure to ensure that it met all of MLGW’s requirements and went as expeditiously as possible.
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