DATACENTERS colossus supercomputer
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Along with high electricity needs, the expected water demand is over five million gallons of water per day.
While xAI has stated they plan to work with MLGW on a wastewater treatment facility and the installation of 50 megawatts of large battery storage facilities, there are currently no concrete plans in place aside from a one-page factsheet shared by MLGW.
In April 2026, representing the NAACP, the Southern Environmental Law Center and Earthjustice sued the company. The lawsuit alleged that the company installed and operated a "Colossus Gas Plant" in Southaven which "emits significant amounts of harmful pollutants, including nitrogen oxides (“NOx”) and formaldehyde, which are tied to increases in asthma, respiratory diseases, heart problems, and certain cancers in persons exposed to them", "likely making the Colossus Gas Plant the largest industrial source of NOx in the greater Memphis area." The lawsuit alleged that the company had violated the United States Clean Air Act "in communities in the greater Memphis area with significant Black populations". In June 2026, the second Trump administration moved to intervene and to dismiss this case. The administration said that the lawsuit "threatens American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War’s military operations." The administration, signed by Stanley Woodward Jr., argued that the executive branch has "the right to unilaterally dismiss" a case brought under the Clean Air Act by a party other than the executive branch if the executive branch objects and cited Executive Order 14156 and Executive Order 14179.
== Community response ==
The plan to build Colossus in Memphis was unknown to residents, City Council members, and environmental agencies. Many did not find out about the project until the day before, or the day of, as they watched the announcement on the local news. Keshaun Pearson, president of Memphis Community Against Pollution, stated that there is a historical lack of transparency and communication surrounding environmental issues in Memphis. Some community members in Memphis have expressed concern about the potential for additional air and water pollution caused by the supercomputer. In a letter to the Shelby County Health Department, the Southern Environmental Law Center stated the emissions from the turbines make the facility "...likely the largest industrial emitter of NOx in Memphis..." This is due to data supplied by the manufacturer showing that "...xAI emits between 1,200 and 2,000 tons of smog-forming nitrogen oxides (NOx)..."
At a public Shelby County Commissioner's hearing on April 9, 2025, residents living near the site of Colossus voiced complaints about air quality, noting that they have chronic respiratory issues related to living in a polluted section of Memphis. One woman said she smells "everything but the right thing and the right thing is the clean air." Other residents voiced frustration that Brent Mayo, the senior xAI official responsible for building out xAI's infrastructure, did not attend the meeting to discuss community concerns.
Keshaun Pearson also stated that "We're getting more and more days a year where it is unhealthy for us to go outside." People living near the site of Colossus have said they were not offered the opportunity for a public review of the plans, nor were they provided with information on how their community could potentially benefit.
The community is also concerned about the strain on the power grid. Memphis's peak demand is around 3 GW. In November 2024, TVA approved xAI's request for access to more than 100 megawatts of power to Colossus which is supplied by MLGW. In December 2022, MLGW imposed (then rescinded) rolling blackouts during several days of extreme cold, straining the power grid. In a letter to the TVA, the SELC "urged the agency to 'prioritize Memphis families' access to reliable power over the 'secondary purpose' of serving xAI".
== Current progress ==
In early December 2024, Ted Townsend detailed how the power of Colossus doubled in its processing capability. When it first went online in September 2024, it was using "100,000 Nvidia H100 processing chips". This initial launch demonstrated Colossus to be the largest supercomputer globally. The maximum power consumption increased from 150 to 250 MW.
As of June 2025, the supercomputer consists of 150,000 H100 GPUs, 50,000 H200 GPUs, and 30,000 GB200 GPUs. Another 110,000 GB200 GPUs are to be brought online at a second data center, also in the Memphis area. The expansion of this supercomputer has already been discussed and will be the second phase of the project. xAI also plans to increase Colossus to 1 million GPUs. Because the supercomputer currently utilizes gas turbines for power, alongside 168 Tesla Megapack battery storage units. xAI is also looking to add more battery storage to help it decouple from the local energy grid.