What we do and don’t know about TVA’s data center rate hikes
When the TVA Board of Directors approved the new rate class for data centers in Memphis on Aug. 20, it held back some important information.
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When the TVA Board of Directors approved the new rate class for data centers in Memphis on Aug. 20, it held back some important information.
Data centers across the Tennessee Valley, including SpaceXAI’s sprawling Memphis operations, will soon face steeper electric bills and must pay far more to access the broader electric grid.Related Content:
Tennessee Valley Authority CEO Mike Skaggs said the change would, in his opinion, put TVA ahead of other utilities in the country in charging data centers for their costs.
SpaceX’s artificial intelligence division asked TVA to directly supply more electricity to its Colossus II campus, which stretches between Memphis and Southaven.
“The communities that succeed in this next economy will be the ones capable of supporting major investment while maintaining the trust of the people who call them home.”
“If you plant the right trees in the right places, embrace and care for our native ecosystem, and hold industry and government accountable for their impacts on our environment, we may just succeed.”
“Our low energy costs, abundant land, strong distribution network, and leadership in advanced manufacturing give Memphis a competitive edge. But we’ll only keep that edge if we expand generation capacity now.”
MLGW will not be providing more than a small amount of power to xAI and the Tennessee Valley Authority may not provide a lot either, according to CEO Doug McGowen.
Author Jared Sullivan wrote a book critical about TVA but he doesn’t think the state should give up on the federal power provider.
Temperatures in the area are expected to plunge into the teens Thursday. The high temperature on Friday is predicted to hover near freezing.
Memphis Light, Gas and Water, which serves the Memphis metro area, is TVA’s largest customer.
The Tennessee Valley Authority’s call for voluntary electricity conservation has ended.
Conserving electricity means turning thermostats to 68 degrees or below, unplugging unused appliances, and avoiding running the washer, dryer, dishwasher and other appliances that use a lot of electricity.
XAI’s planned expansion comes with a pressing question: Where would the project get its power? Elon Musk’s xAI poised to invest billions of dollars in Memphis supercomputerRelated content:
Multiple TVA board members asked questions about the impact xAI has had on surrounding neighborhoods in Westwood and Boxtown.
“TVA is trying to distract us from remembering its broken promise and now charging us higher rates to fund self-congratulatory ads aimed at making us grateful to be their customer.”
TVA has about 500 large power users that participate in its demand response system, but it won’t say how much energy they cut when they’re asked. It also won’t say who those 500 users are.
“With high groceries, rent, gas, everything is expensive,” said Ashley McCray, who’s in the program. “This will be very good for me, so I’m excited about it.”
After xAI’s supercomputer came online, the Elon Musk-founded artificial intelligence startup revamped its plans for a greywater facility to include other large water users.
Environmental activists have raised concerns about emissions from the site as well as impact on the region’s drinking water.
The treated wastewater from the plant would replace demand on the region’s supply and save hundreds of millions of drinking water a year from industrial use.
A source close to xAI said it could share a greywater plant with the Tennessee Valley Authority. TVA did not dismiss the idea. Related story:
The arrival of xAI’s “gigafactory of compute” could pose new challenges and opportunities for the region’s electric grid.
A new federal bill could require the Tennessee Valley Authority to consider more public input in its long-term planning process.
Officials met Jan. 31 in Jackson, Mississippi, to address updates from a report issued by the TVA in 2023 detailing safety issues and concerns about the utility provider’s ability to sustain itself.