Elon Musk’s artificial intelligence startup, xAI, has begun construction on an $80 million wastewater treatment facility in Memphis, Tennessee. This initiative aims to reduce the strain on the Memphis aquifer by 9% and repurpose 20% of the wastewater from the nearby Memphis T.E. Maxson facility, preventing it from flowing back into the Mississippi River.
A Step Towards Sustainable Water Management
On October 10, 2025, local officials, including Councilman J. Ford Canale and Ted Townsend, CEO of the Memphis Chamber of Commerce, gathered with xAI staff for the groundbreaking ceremony. The facility is designed to recycle up to 13 million gallons of greywater each day for industrial cooling use, significantly helping in conserving 5 billion gallons of potable water annually. This reduction will ease the demand on Memphis’ primary water supply.
The facility will feature the largest ceramic membrane membrane bioreactor (MBR) in the world, incorporating 13,000 membrane modules that collectively cover over 900,000 square feet, equivalent to approximately 16 football fields. While construction permits for the pump station have been obtained, the main operations permit from the Tennessee Department of Environment and Conservation is still under review.
Private Funding and Community Impact
This wastewater treatment facility marks a significant advancement in privately funded water reclamation initiatives. xAI is financing the construction, reflecting its dedication to sustainable infrastructure in the Memphis area. Preliminary plans were filed by xAI’s affiliate, CTC Property LLC, in 2024, demonstrating a commitment to long-term environmental solutions.
Don Moul, CEO and President of the Tennessee Valley Authority (TVA), expressed his enthusiasm for the project, highlighting its potential benefits. “This is a big day for Memphis, Tennessee. This initiative not only reduces our need to purchase water from MLGW for our nearby Allen Combined Cycle Plant, but it also eases demand on the region’s potable water system,” he stated. “By recycling water for cooling purposes, we’re helping to preserve drinking water for the community and advancing a solution that benefits both the environment and the Greater Memphis area.”
As construction progresses, the initiative is seen as a critical step towards enhancing sustainable water management and addressing the region’s growing water challenges. With xAI’s commitment to innovation, Memphis is poised to benefit from a transformative approach to wastewater treatment and conservation.
