Behind the Headlines Podcast · WKNO/The Daily Memphian

1606: TVA likely to be backup power for xAI

·32 min·2 clips

AI data centers are raising the baseline power load while residential peaks hit new highs, says MLGW's CEO.

This episode of Behind the Headlines examines the local and national implications of surging electricity demand, particularly from data centers like xAI's facilities in Memphis. Host Eric Barnes of The Daily Memphian is joined by MLGW President and CEO Doug McGowan, MLGW VP of Corporate Communications Ursula Madden, and Daily Memphian reporter Sam Hardiman. The discussion centers on xAI's two local data centers and their differing power arrangements. The first site on Paul R. Lowry Road currently draws about 150 megawatts from MLGW, with plans to reach 300 megawatts by early next year. The second, larger site on Tulane Road has requested 1,100 megawatts, but MLGW lacks that capacity, leading xAI to plan a private natural gas plant in Mississippi for its primary supply. McGowan notes electricity demand in the Tennessee Valley is growing at 2.5% annually, exceeding forecasts, with data centers raising the baseline load and residential use creating higher peaks. The conversation shifts to MLGW's Plus One assistance program, which faces uncertainty as federal Low Income Home Energy Assistance Program (LIHEAP) funding, which provided $17 million to 25,000 households in 2024, is at risk. MLGW has established the Power of Giving Fund, distributing about $151,000 monthly to roughly 160 qualified households, but the portal closes quickly due to high demand. A surprising claim is that Memphis has exceptional gas supply reliability due to contracts with three separate transmission pipelines and significant storage capacity, which prevented conservation orders during a recent polar vortex. McGowan reveals MLGW is in a "hurry up offense" to deploy solar and battery storage to leverage federal tax credits expiring in July 2026. He attributes a 50% reduction in outage minutes since 2023 to aggressive tree trimming, achieving 134% of their annual goal. Madden explains that while MLGW has been transparent about its role, many public questions about xAI's operations must be directed to the company itself, as MLGW cannot speak for them. The tone is informational and conversational, featuring a panel discussion among journalists and public utility leaders. The style is grounded in local reporting and utility management perspectives, balancing technical infrastructure details with community impact concerns. This episode would appeal to Memphis residents interested in utility policy, infrastructure, and the local economic impact of major tech investments. Listeners seeking a broad, national analysis of AI's energy consumption or a critical investigation into xAI's environmental footprint might find the focus too locally administrative.

As heard by us

A Memphis utility conversation tying xAI load to LIHEAP and the Plus One fund.

Behind the Headlines opens on the practical side of xAI: the power demand it could bring, and what that means for how MLGW plans around capacity.

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Why you'd press play

You want the Memphis utility story behind xAI's power demand and the planning pressure around it.

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