In short
SpaceXAI plans to resume construction of a water treatment plant in Memphis, which was suspended a year ago. The $80 million facility will be able to treat up to 49.2 million liters of water per day to meet the needs of data centers and urban infrastructure.
SpaceXAI has announced its intention to resume construction of a water treatment facility in Memphis, which will be the world’s largest facility of its kind. The project was put on hold in April 2026 due to a reallocation of resources, but work is now scheduled to resume in the first quarter of 2027, although Elon Musk has not ruled out an earlier start—as early as the fourth quarter of 2026.
The facility, costing approximately $80 million, is designed to treat wastewater generated by the company’s data centers. Its capacity will be 49.2 million liters per day. Some of the treated water will be returned to the city’s water supply system, which will reduce the strain on the local aquifer.
Construction began in September 2025 but was put on hold in April 2026. In February 2026, SpaceX acquired xAI in its entirety, after which the brand was rebranded as SpaceXAI—a division dedicated to developing AI products. A strategic review in February 2026 led to the decision to complete key infrastructure projects.
Following a series of negotiations with Memphis officials, including the mayor and utility services, the company confirmed its intention to resume construction. The facility is expected not only to meet the needs of data centers but also to improve the environmental conditions in the region.
Source: iXBT.com