xAI’s Colossus data center in Memphis, Tennessee, was reported to receive approval for an additional 150 megawatts of electricity in November 2024. That was a genuine power-infrastructure decision involving the Tennessee Valley Authority (TVA) and Memphis Light, Gas and Water (MLGW). There is no reliable evidence, however, that xAI introduced a product, model, service, or cryptocurrency called XAI78R.
The two claims should not be treated as one announcement. The power approval concerned Colossus’s ability to operate a very large GPU installation; XAI78R appears in scam-related, xAI-impersonation material rather than in an official xAI product announcement.
The real announcement: 150MW for Colossus
In reports published November 7–13, 2024, the TVA board approved MLGW’s request to provide xAI’s Colossus facility with an additional 150MW of electricity supply. Colossus occupies a former Electrolux factory in southwest Memphis.
MLGW is Memphis’s local utility, while TVA supplies regional generation and transmission. The approval created a path for more utility power; it did not mean xAI received free electricity, an unlimited feed, or an independently measured 150MW of continuous consumption.
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Data Center Dynamics reported the TVA decision and associated commitments, while Tom’s Hardware described the approval as enabling the initial GPU cluster to operate concurrently.
Why Colossus needed more power
xAI has described Colossus as a large-scale AI supercomputer and data-center installation used to train and operate Grok. The initial system was widely reported as containing about 100,000 Nvidia GPUs, although that inventory is attributed to xAI and Elon Musk rather than independently audited.
The site’s reported power position developed in stages:
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- Early grid access: approximately 8MW was initially available from the local grid.
- Temporary generation: xAI used mobile or onsite generation while utility capacity was insufficient.
- Interim upgrade: MLGW upgraded the relevant substation to roughly 50MW.
- Additional utility path: TVA approved the request associated with another 150MW of supply.
The 150MW figure should be understood as electrical capacity or supply arranged for the facility, not as a guarantee that the site would draw that amount every minute. Actual consumption changes with workload, GPU power limits, cooling conditions, networking, storage, and other operating factors.
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Capacity is not the same as energy use
| Term | Meaning in this story |
|---|---|
| IT load | Electricity used by GPUs, CPUs, networking and storage. |
| Facility load | IT load plus cooling, pumps, power conversion, lighting, security and other building systems. |
| MW capacity | The maximum or contracted rate of electrical power available at a moment. |
| MWh consumption | The amount of energy actually used over a period of time. |
Could 150MW run 100,000 GPUs?
Contemporaneous industry estimates put the power required for 100,000 H100-class GPUs at approximately 150–155MW. That is an estimate, not a verified xAI measurement, and it does not automatically equal the site’s total facility load.
Reports therefore reasonably described the approval as allowing the initial 100,000-GPU installation to approach full simultaneous operation. “All GPUs can run at once” is not the same as saying all of them ran at maximum power continuously. Workload scheduling, thermal limits, cooling overhead, networking and storage can all change the result.
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Musk and industry coverage also discussed expansion toward approximately 200,000 H100/H200-class GPUs. The original 150MW arrangement would not necessarily be sufficient to operate twice as many accelerators at full simultaneous load.
For context on the accelerator class involved, see NVIDIA’s H100 product page. xAI’s official company and product sites are x.ai and Grok.
Infrastructure commitments and who pays
Coverage described several reported commitments connected with the power arrangement. They should be read as agreements, pledges or proposals unless a later record establishes completion:
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- xAI was reported to commit approximately $24 million toward a new substation.
- MLGW-related substation work was reported at approximately $760,000 in taxpayer cost.
- xAI pledged a large ceramic-membrane greywater facility.
- The company reportedly offered discounted Tesla Megapack battery storage to support grid stability; Megapack is Tesla’s utility-scale storage product.
- Reporting said certain costs could initially be rebated or recovered through xAI’s payments before the utility took ownership of the substation.
These figures do not establish a final project cost, a household-rate impact, or completion of every proposed measure. Enterprise GPU, power and storage projects are generally quote-based and depend on installation, financing, transmission, cooling and service requirements.
Why the Memphis project drew objections
Criticism focused on several distinct issues rather than one proven violation:
- Grid reliability: whether a very large new industrial load could strain the Memphis-area system.
- Rates and cost allocation: whether residents or other customers could bear costs for generation, transmission or upgrades.
- Air quality: emissions, noise and permitting questions related to temporary or onsite gas generation.
- Environmental justice: southwest Memphis already carries a heavy industrial-pollution burden, prompting concern about placing additional infrastructure there.
- Review and oversight: whether TVA and local authorities studied the effects of the load deeply enough before approval.
MLGW CEO Doug McGowen said the additional demand was within the utility’s peak-load forecast and that MLGW could obtain more TVA power if necessary. TVA said it reviews proposals and associated demand while emphasizing reliability, affordability and demand-response measures. Those are utility assurances, not independent proof that rates, reliability or emissions were unaffected.
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Data Center Dynamics and TechRadar Pro documented the competing infrastructure and community arguments. Claims that generators were “illegal” should be attributed to the relevant campaigners, legal filings or regulators rather than presented as a settled legal finding.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is XAI78R?
XAI78R is not verified as an official xAI product, model, service, ticker or token. It does not appear in the reported Colossus coverage or the November 2024 power announcement. Exact-match results instead associate the string with xAI-themed cryptocurrency promotion and scam infrastructure.
Palo Alto Networks’ Unit 42 described a campaign involving malicious sites that impersonated xAI and promoted xAI-themed tokens with aggressive return claims. Its account is available in this Unit 42 post. That evidence links the term to scam-related activity; it does not prove that every use of the string is controlled by one operator or establish a final legal finding.
A token’s use of “xAI,” “Grok,” “Musk” or “Tesla” branding is not evidence of a partnership. Nor does a real xAI infrastructure announcement validate an unrelated token.
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How to check an alleged xAI token or product
- Check the source: look for an announcement on an official xAI domain or a verified official account.
- Look for documentation: a real product should have technical documentation, a product page, a paper, a press release or an appropriate regulatory disclosure.
- Identify the issuer: for a token, require a specific contract address, identifiable issuer and credible documentation.
- Test the promises: guaranteed or unusually high returns are a major warning sign.
- Inspect the domain: look for misspellings, look-alike domains and newly created sites impersonating xAI.
- Protect your wallet: never provide a seed phrase or private key, and do not connect a wallet or send cryptocurrency merely to receive a supposed presale allocation.
What can—and cannot—be concluded
Established by the reported record
- TVA approved an additional 150MW supply request associated with xAI’s Colossus facility in Memphis in November 2024.
- The site faced a reported progression from roughly 8MW of grid capacity to an interim 50MW upgrade and then a path toward additional utility supply.
- The project involved major GPU, cooling and power-infrastructure demands.
- Local campaigners raised grid, rate, air-quality and environmental-justice concerns.
Not established
- That XAI78R is issued, endorsed or operated by xAI.
- That 150MW was dedicated to XAI78R.
- That the entire 100,000-GPU fleet operated continuously at maximum load.
- That every proposed substation, greywater or battery commitment was completed.
Bottom line
The November 2024 150MW approval was real infrastructure news about powering xAI’s Memphis Colossus facility. It does not substantiate a launch called XAI78R. Until an official xAI source, technical documentation or regulatory record proves otherwise, treat XAI78R as an unverified—and potentially scam-related—claim, not as an xAI investment or product.
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