The world’s biggest AI training clusters require enormous amounts of power, water and community support. SpaceXAI is betting that all three can be secured in the American Mid-South.
A new Mid-South website page from SpaceXAI Memphis highlights the company’s Memphis, Tennessee and Southaven, Mississippi footprint. The page summarizes previously disclosed figures on the Colossus I and II supercomputing facilities, which rank among the world’s most advanced AI training clusters. They cover more than 2.5 million feet, include millions of GPUs and deliver over two gigawatts of compute. Colossus now runs 220K+ GPUs, an early milestone in the Colossus GPU buildout toward 1.44 million chips by December.
SpaceXAI Memphis said Friday its computing “advances medical research, emergency response, manufacturing, and national security, creating jobs and increasing revenue for schools, hospitals, and other services.”
Water is a major focus of the new Mid-South page, with SpaceXAI investing $360 million in a clean water recycling plant designed to process up to 10 million gallons of wastewater a day. The system is expected to keep about 3.64 billion gallons a year in the Memphis Aquifer. According to the company, Memphians have sought such a plant for a decade, and it comes at no cost to the city.
Closed-loop cooling reduces freshwater use by up to 70%, with the same water reused for up to 10 years. Colossus I uses a hybrid system that draws about 820,000 gallons a day, similar to other industrial users, while Colossus II uses closed-loop cooling and takes only domestic water.
For power, the page lists 240 high-capacity backup batteries that allow Colossus I to come fully offline during emergencies or peak demand while helping stabilize the grid. The batteries complement Tesla Megapacks already committed to Colossus II.
Since joining the community in 2024, SpaceXAI says it is investing more than $90 billion in the region. The page projects $60M+ in 2026 tax revenue, 7,500+ local jobs supported and 630+ suppliers.
Community investment includes $5 million for local high school renovations, covering new locker rooms and HVAC systems, along with scholarships for Shelby and DeSoto County students pursuing technology and STEM. Memphis is also paired with Southaven, where 41 Southaven gas turbines received a state permit earlier this year.
SpaceX is offering neighbors in Memphis and Southaven a 50% discount on Starlink Residential service plans, with about 2,000 residents enrolled since late June. SpaceXAI says it is hiring locally and working with community colleges, veterans placement organizations and high school technical programs. The computing power supports SpaceXAI’s broader AI work, including Grok 4.7, described as the company’s smartest AI yet for writing code.
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