XAI promised it would save billions of gallons of fresh drinking water every year by recycling wastewater. Now, that’s in doubt.
Earlier this year, xAI merged with SpaceX. Before the merger, Bloomberg reported in 2025 the artificial intelligence company burned about $1 billion in cash per month as the cost of its data center buildout, particularly in Memphis, piled up. (Patrick Lantrip/The Daily Memphian)
Within moments of xAI’s presence in Memphis becoming public in June 2024, people worried about the water.
They worried about how a massive data center would treat the Memphis Sand Aquifer, the drinking-water supply so beloved it inspired a beer.
Elon Musk’s artificial intelligence company — at the urging of local leaders, including Memphis Mayor Paul Young and Memphis Light, Gas and Water CEO Doug McGowen — moved quickly to assuage those concerns.
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Samuel Hardiman
Samuel Hardiman is an enterprise reporter who focuses on government and politics. He began his career at the Tulsa World where he covered business and K-12 education. Hardiman came to Memphis in 2018 to join the Memphis Business Journal, covering government and economic development. He then served as the Commercial Appeal’s city hall reporter and later joined The Daily Memphian in 2023. His current work focuses on the intersection of government, public policy, influence and how public dollars are spent.
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