The AM/DM podcast: xAI’s power pays
The AM/DM is The Daily Memphian’s weekday podcast. Listen in every morning around 6:30 a.m. to get the news you need for the day, as well as a critical — but quick — interview on a larger story.
For much of its first year in existence, xAI used Tesla Megapacks and portable natural gas turbines — in addition to some power from Memphis Light, Gas and Water — to power Colossus, its first area data center.
But the artificial intelligence company’s local power usage ramped up in April of 2025, after the company appeared to fully connect to a newly constructed MLGW substation.
Last year, the company paid MLGW $50 million for power at Colossus, located on Paul Lowry Road — which equates to an average monthly power bill of $4.5 million.
Today, we talk about the amount of power xAI is using, as well as what they are using it for, and how it all fits into the national conversation.
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AM/DMMary Cashiola
Mary Cashiola has been a Memphis journalist for nearly two decades, beginning her career covering city government and local neighborhoods at the Memphis Flyer before being hired by Memphis Mayor A C Wharton’s administration.
Before joining The Daily Memphian, she was the managing editor of the Memphis Business Journal, which was named one of the top 10 Best Designed Newspapers in the world by the Society of News Design while she was there.
She also has a background in advertising, with a focus on higher education and the hospitality industry.
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