Memphis water-reuse promise for xAI stalls amid IPO talks

Elon Musk’s xAI paused the planned water-recycling facility in Memphis intended to cool its Colossus data center, delaying a project touted as an environmental model. With no restart date and rising costs cited in the context of SpaceX’s looming IPO, locals worry about drinking water and broader data-center water use, while officials say the pause is a sequencing choice with no legal obligation to finish. The situation highlights the risk that multiple new data centers could place continued strain on Memphis’ municipal water supply.