Memphis Data Center Will Harness Wastewater for Cooling

The xAI-owned Colossus facility uses as much water as 10,000 households.

2 minute read

March 17, 2026, 6:00 AM PDT

By Diana Ionescu @aworkoffiction


Google Street View image of cranes at construction site for data center in Memphis, Tennessee.

Construction at the site of the xAI data center in November 2025. | Google Maps / Memphis, Tennessee

An xAI data center in Memphis plans to use wastewater to cool its equipment, a victory for local advocates fighting to preserve the Memphis Sands Aquifer, which is losing water at a rate faster than it is replenished.

As Carl Smith explains in Governing, “There was enough water in the local drinking water supply to satisfy the millions of gallons Colossus needs each day for its cooling towers, but there was another possibility for the long term. The city’s wastewater treatment plant was a neighbor in the Frank C. Pidgeon Industrial Park, where Colossus servers worked day and night to set the future course of AI.”

Using wastewater for cooling isn’t a new concept: Amazon has been using wastewater at 20 of its U.S. data centers, and Google says it uses “reclaimed or non-potable” water for cooling at a quarter of its campuses. After making arrangements with the city, the Tennessee Valley Authority, and the local water utility, In Memphis, construction began in 2025 on the Colossus Water Recycling Plant. 

According to Smith, “xAI will pay the city for the treated wastewater it receives. The city plant cleans about 40 million gallons a day, far more than the 3 million needed to keep Colossus cool.”

Smith points out that there are limits to the data center’s sustainability: two other Colossus facilities planned for Memphis are too far from the wastewater treatment facility to use it, and their energy consumption will equal that of 1.5 million homes.

Monday, March 16, 2026 in Governing

Lake Powell with much of the water evaporated.

Desperate measures: Advocates weigh draining Lake Powell to fill Colorado River

Draining the reservoir could reduce evaporation losses by a couple hundred thousand acre-feet.

October 30, 2026 - Yale Environment 360

A road in north eastern Nebraska with power lines on either side, and grassy fields.

Eastern Nebraska is running out of electricity

Data centers and electrification are straining eastern Nebraska’s grid, throttling economic development.

November 6, 2026 - Grist

People walking in downtown St. Louis, walking past shops.

Move over, LA: St. Louis gears up for Olympics, invests millions in downtown redevelopment

The Missouri city will host the 2028 Olympic soccer group stage and knockout matches.

November 1, 2026 - Smart Cities Dive

construction near Boston, with machinery digging at large pit.

Mass. votes against statewide minimum lot size for single-family homes

Over 2 million residents voted on Question 7; it was decided by just over 30,000 votes.

45 minutes ago - GBH

A bridge over the Chesapeake Bay in Maryland.

Maryland’s $15 billion bridge project gains key approval

The Maryland Transit Authority said the project will create over 60,000 jobs and add $23 billion to the local economy.

1 hour ago - WTOP News

A crowd of people cheering for an unseen performer.

‘No clear next steps’ for Chicago's permanent festival grounds

Eleventh Ward Ald. Nicole Lee has suggested Soldier Field as a possible location for the permanent event space.

2 hours ago - Chicago Sun Times

FREE Course: Walkable City 1: Why Walkability?

After describing his path towards focusing on walkability as the essence of good planning, Jeff Speck marches through his five principal reasons for making more walkable places.

Reinventing Malls: Planning Alchemy—Turning Gray Fields Into Gold

The course focuses on the opportunities and imperatives that shape reinvention of mall sites.