The first phase of Elon Musk’s xAI Memphis Supercluster has just reached full operational capacity as the on-site substation goes online and connects to the main power grid. According to the Greater Memphis Chamber, the site will receive 150 MW from Memphis Light, Gas, and Water (MLGW) and the Tennessee Valley Authority (TVA). Aside from that, the xAI Colossus supercomputer also boasts another 150 MW of Megapack Batteries that will serve as backup, allowing it to stay powered in case of outages or during times of increased demand.
Musk first turned on his AI cluster in July last year, which housed 100,000 Nvidia H100 GPUs on a single fabric. The xAI supercomputer was set up at such an impressive speed, as it only took the company 19 days to make it operational — something Nvidia CEO Jensen Huang said usually takes four years. However, this speed meant it had to cut some corners, such as launching without getting power from the grid, so the site used a plethora of natural gas turbine generators for its electricity needs. Initial reports say 14 generators, outputting 2.5 MW apiece, were parked on its premises, but some residents have recently complained that over 35 turbines have been spotted in the vicinity.
This development means that the site’s first phase of development can now run completely on power from the TVA, which sources about 60% of its capacity from renewable sources like hydroelectric, solar, wind, and nuclear. Because of this, xAI will now demobilize about half of the generators it temporarily used to power Colossus — the other half will have to remain, though, to deliver the electrical needs of the second phase of the Memphis Supercluster.
We do not expect this to stay on for long, though, as a second substation, which will deliver another 150 MW, is expected to come online in the Fall of this year. This means that Colossus will have a total capacity of 300 MW — enough to power 300,000 homes. This is a massive power requirement, and there were previously some concerns about whether the TVA has enough capacity to accommodate it. The power provider has reassured various stakeholders that it can deliver that demand without affecting the supply to everyone else.
The road to powering a million GPUs
Colossus initially launched with 100,000 Nvidia H100 units in July 2024, with its GPU count doubling to 200,000 in February 2025. Musk reportedly wants to scale the Memphis Supercluster to a million GPUs, and he’s already trying to raise the funds to make his dream a reality. However, that many GPUs at the same site would mean that he’ll need so much more electricity — hopefully, the TVA can deliver that without affecting the power quality for the residents that live near the Memphis Supercluster.
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