XAI says it will resume work on its water reuse facility in 2027

By Ariel Wittenberg, Miranda Willson | 06/24/2026 01:09 PM EDT

The announcement comes after the company abruptly paused work on the facility two months ago.

Elon Musk.

Elon Musk, the company's founder, said on social media that work on the plant could even start as soon as the fourth quarter. Pool photo by Leon Neal

XAI has promised to resume construction next year on a water recycling plant to support one of its Memphis data centers, after it abruptly stopped work on the facility two months ago.

Memphis Mayor Paul Young (D) posted on the social media site X he had a “productive meeting” with SpaceX President Michael Nicolls, who had “committed to resuming construction on the recycled wastewater treatment facility no later than” the first quarter of 2027.

The facility would clean wastewater from the city for reuse by both xAI and the Tennessee Valley Authority, which has a natural gas power plant in close proximity to the company’s first Memphis-area data center.

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“Happy to work with @mayorpaulyoung and the City of Memphis on this project,” xAI posted on X.

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