SpaceXAI to Build World's Largest Water Treatment Plant for AI Projects

SpaceXAI, led by Elon Musk, has announced the restoration of a massive stalled infrastructure project in Memphis (USA). The world's largest wastewater treatment plant will serve the needs of AI projects and data centers. This is reported by Ixbt.com news reports.

The total cost of the project is estimated at nearly $80 million. First announced in February 2025, this station is the largest water treatment facility of its kind. The main goal of the project is to provide a continuous water supply for the company's high-performance computing centers and reduce the load on local aquifers.

According to calculations, the facility will be capable of processing up to 49.2 million liters of wastewater per day. Most importantly, a portion of the treated water will be returned to the Memphis city infrastructure. This will significantly help ease the pressure on the region's overall water supply system.

Construction Halt and New Strategy

Construction began in September 2025, but shortly after, in April of the same year, work was temporarily frozen. This was caused by the redistribution of internal company resources and preparations for a potential IPO (initial public offering). During that period, the primary focus was shifted to expanding the computing power of the data centers.

However, by February 2026, company management revised its strategy and stated a focus on completing key infrastructure facilities. Following negotiations with the Mayor of Memphis and utility representatives, a final decision to resume construction was reached.

According to the plan, main works should resume in the first quarter of 2027. However, as CEO Elon Musk noted, the process could start sooner than expected, possibly as early as the fourth quarter of 2026.

Merger of SpaceX and xAI

This project is being implemented against the backdrop of structural changes within SpaceX. In February 2026, SpaceX fully acquired its AI startup, xAI. As a result, xAI ceased to exist as an independent company and was transformed into a specialized AI division within SpaceX under the SpaceXAI brand.

The rapid development of AI technologies and the training of large neural networks require massive amounts of energy and water resources for cooling systems. This giant treatment plant being built by SpaceXAI not only demonstrates the tech giant's environmental responsibility but also serves as an important model for the sustainable development of AI infrastructure in the future.