After linking to that New Yorker article about xAI using gas turbines to help power its first supercomputer here in Memphis, I opened my RSS client to see this article by The Daily Memphian’s Samuel Hardiman who writes:
Memphis Light, Gas and Water said Monday, May 5, that artificial intelligence company xAI’s second Memphis datacenter could require enough electricity to equal 40% of Shelby County’s demand.
On its website, the City of Memphis-owned utility said that xAI and the utility have discussed using up to 1.1 gigawatts of power at its Tulane Road datacenter. However, the utility said that amount of power is not poised to be delivered soon and is not being formally studied by MLGW.
For context, MLGW’s maximum electricity demand of all time is about 3,300 megawatts or 3 gigawatts. On an average day, MLGW uses about 2,000 megawatts or two gigawatts.
In it report, the utility writes:
xAI has not submitted a final request, so MLGW is not currently conducting a system impact study for this site.
MLGW is obligated to assure the reliability and availability of the utilities we provide for our existing customers before we can allow any new customers to connect to the system. In other words, we cannot let the connection of a new customer impact on the reliability or availability of utilities that our current customers enjoy. For large electric loads (demands), or to connect new electric generation to the grid, we are obligated to follow a rigorous engineering study process dictated and enforced by the Federal Energy Regulatory Commission, ensuring that the new connection will not adversely impact on the nation’s Bulk Electric System. TVA has the same requirements to follow the FERC process.
The Federal Energy Regulatory Commission has not been immune to cuts being made by the Elon Musk-run DOGE group currently running around inside the federal government, as reported by Politico:
Energy regulators could see their offices downsized, too. DOGE has cited lease cancellations at Federal Energy Regulatory Commission offices in Duluth, Georgia, where the commission has a regional office, and in Carmel, Indiana, where FERC has a satellite office.
“We are aware of the listing of those two offices on the website,” FERC spokesperson Celeste Miller said in an email. “In compliance with prior direction from the [the Office of Management and Budget], we are assessing our real estate expenses to ensure cost efficiency. Our goal, as always, is to maintain FERC’s critically essential missions and services and retain the employees necessary to perform those essential functions.”
…and by Utility Dive’s Ethan Howland:
The White House on Tuesday claimed authority over the Federal Energy Regulatory Commission and other independent agencies.
FERC and other independent agencies, such as the U.S. Securities and Exchange Commission, must submit proposed and final significant regulatory actions for review by the Office of Management and Budget’s Office of Information and Regulatory Affairs under an executive order issued by President Donald Trump.
The independent regulatory agencies exercise substantial executive authority without adequate accountability to the president, including issuing regulations without review by the White House, according to the executive order.
“These practices undermine such regulatory agencies’ accountability to the American people and prevent a unified and coherent execution of federal law,” Trump said in the executive order.
So, to recap:
- Elon Musk’s xAI is building a second supercomputer in Memphis
- That supercomputer is going to use a jaw-dropping amount of power that triggers federal oversight
- The agency in charge of that oversight is in the crosshairs of the Trump administration, of which Elon Musk is an unelected part
Given how many gas turbines are spinning 20 or so miles from my house, I suspect even more will be fired up and the second site once it is built. Memphis leaders are ill-equipped to handle this, and bodies like the Chamber of Commerce are still actively cheerleading these moves, even as other AI companies look to move to the area. Our local leaders have to get a handle on these issues, even in cases where the federal government won’t step in. Citizens have to continue to make their voices heard.
The press — including The Daily Memphian — are right to continue reporting on this, but not linking MLGW’s statement to what the White House is doing with the Federal Energy Regulatory Commission is disappointing. I expect better, and while I am not against progress or jobs, but not at the expense of the health of my fellow Memphians.