Memphis Light, Gas & Water Made $1 Million Error in xAI’s Billing

For the second time, xAI has fallen behind on its bills to our local utility company. In February 2025, it was reported that the AI company was $400,000 behind and received several cutoff notices.

This time it seems that the error was on the side of MLG&W, per David Royer and April Thompson, reporting for WREG:

xAI’s Colossus data center in Memphis was issued a cutoff notice for a past-due bill by the local utility company in June, a month when it owed nearly $1 million for electricity, gas and water service.

But xAI says the company has paid its bills on time and in full, saying the notices were the result of internal accounting errors on the part of the utility.

Memphis Light Gas & Water confirmed that statement, saying, “xAI is current on its bill. MLGW continues to work with xAI on any billing concerns. There was a routing issue on MLGW’s side that has been corrected.”