Elon Musk highlighted potential power generation issues for AI development due to expanding data centers. His AI startup, xAI, plans to build a gigawatt-scale facility in Memphis, Tennessee, expected to be completed within 6 to 9 months. A gigawatt (GW) matches the output of a typical U.S. nuclear power plant.
Musk identified three major constraints for AI scaling: chips, transformers, and power generation. Transformers reduce power plant voltage for computer use. He predicts power generation challenges by mid to late next year as transformer shortages are addressed.
Musk noted China's power generation growth surpasses that of the U.S., describing China's progress as rapid compared to the U.S.'s steady pace. xAI's Memphis data center uses natural gas turbines, drawing criticism from environmentalists for allegedly violating the Clean Air Act by operating without mitigation technologies or permits.
