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SpaceXAI Powers Up with TVA Deal
21 Aug
Summary
- TVA and SpaceXAI affiliate MZX Tech signed a new service agreement.
- A new rate will increase charges for data centers over 5 megawatts.
- SpaceXAI will build necessary infrastructure for the new power load.
The Tennessee Valley Authority (TVA) has entered into a service agreement with MZX Tech LLC, an affiliate of Elon Musk's SpaceXAI, to supply power for its data centers in the Mid-South region.
On August 20, the TVA Board of Directors approved a load request exceeding 100 megawatts for MZX Tech. This customer will adhere to a new rate for data centers, which was also passed by the board during its meeting. This rate introduces a 10% increase for data centers utilizing more than 5 megawatts, a change from the previous standard commercial/industrial rate.
SpaceXAI will construct the necessary infrastructure, including transmission lines and transformers, to support this new power demand. This move signifies a shift for SpaceXAI, which previously operated using off-grid connections and microgrids, incorporating gas turbines, solar, and battery storage for its facilities.
The TVA's decision was made despite recent discussions by the Memphis City Council regarding a potential moratorium on new data center construction. TVA officials stated that discussions with SpaceXAI for this service agreement predated the moratorium talks, and they felt obligated to honor existing agreements.
