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SpaceXAI Powers Up with TVA Deal

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.
SpaceXAI Powers Up with TVA Deal

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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