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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsThe November 2024 approval was a genuine power-infrastructure decision, not an announcement of a new xAI product or cryptocurrency. The Tennessee Valley Authority approved Memphis Light, Gas and Water’s request to supply an additional 150 megawatts to xAI’s Colossus data center in Memphis. No reliable first-party evidence shows that xAI launched, endorsed or introduced anything called “XAI78R”; exact-match results instead associate the name with xAI-impersonation crypto-scam activity.
What TVA actually approved
In reports published November 7–13, 2024, the TVA board approved MLGW’s request for an additional 150MW of electricity supply for xAI’s Colossus installation at a former Electrolux factory in southwest Memphis, Tennessee. MLGW is the local distribution utility; TVA supplies the region’s generation and transmission. The approval created a path to substantially more utility capacity. It did not mean that xAI received 150MW of free electricity, that the site would continuously consume 150MW, or that every megawatt was immediately available at the moment of the vote.
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Coverage of the decision is available from Data Center Dynamics and Tom’s Hardware.
Why Colossus needed a larger power connection
Colossus is xAI’s large-scale AI data-center and supercomputer installation for training and operating Grok. xAI and Elon Musk described the initial cluster as containing about 100,000 Nvidia GPUs, although that inventory has not been independently audited in the cited coverage. Musk and industry reports also described plans to expand toward roughly 200,000 H100/H200-class GPUs.
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The site’s reported electrical progression shows why the TVA decision mattered:
| Stage | Reported capacity or action | What it means |
|---|---|---|
| Early operation | About 8MW from the grid | Insufficient for the full planned cluster; xAI used temporary or mobile generation to supplement supply. |
| Interim upgrade | About 50MW | MLGW upgraded the existing substation and increased available utility capacity. |
| TVA-approved path | Additional 150MW | A much larger utility supply arrangement for Colossus, subject to infrastructure and operating conditions. |
Industry estimates put the electrical requirement of 100,000 H100 GPUs at approximately 150–155MW. That is an estimate, not an audited measurement of Colossus. A data center’s total load includes more than GPUs: CPUs, networking, storage, power-conversion losses, pumps, chillers, lighting and other facility systems all consume electricity.
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Capacity is not the same as consumption
- MW capacity is the maximum or contracted electrical capability available to a facility.
- IT load covers computing and network equipment.
- Facility load covers cooling and other supporting infrastructure.
- MWh consumption is the energy actually used over a period of time.
Consequently, saying the approval could let 100,000 GPUs run concurrently is a useful shorthand, but not proof that all of them operated at maximum power continuously. Workload, GPU power limits, cooling conditions and non-GPU demand determine the actual draw. A 200,000-GPU expansion would require additional power planning beyond the original 150MW path.
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Substation, storage and water commitments
Reporting described several related commitments and proposals. xAI was reported to be spending about $24 million on a new substation, while MLGW’s associated work was reported at about $760,000 to taxpayers. Coverage also described a proposed ceramic-membrane greywater facility and discounted Tesla Megapack batteries that xAI would provide or offer to support grid stability. The reported arrangement contemplated MLGW initially recovering certain costs through xAI’s payments before taking ownership of the substation.
These figures describe reported agreements or commitments, not proof that every project was completed. The infrastructure story is documented by Data Center Dynamics.
Why the Memphis decision drew criticism
Community and environmental campaigners raised several concerns:
- Whether a very large new industrial load could strain the Memphis-area power system or affect future electricity prices.
- Air-quality, noise and permitting issues associated with temporary or onsite gas generation used while grid capacity was limited.
- Environmental-justice concerns because southwest Memphis already carries substantial industrial pollution burdens.
- Whether TVA had fully evaluated the effects of the new load before approving it.
Those are reported criticisms, not settled legal findings. MLGW CEO Doug McGowen said the demand fit within the utility’s peak-load forecast and that MLGW could obtain additional TVA power if necessary. TVA said it reviews proposed company loads and emphasized reliability, affordability and demand-response measures. Such assurances are the utilities’ positions, not independent proof that rates or reliability could not be affected. See the reporting from TechRadar Pro and Tom’s Hardware.
XAI78R: no verified xAI launch
There is no reliable evidence in the cited material that “XAI78R” is an xAI model, service, token, ticker, product or official announcement. It does not appear as part of the Colossus power decision or the cited coverage of Grok and xAI infrastructure.
An exact-match search instead connects the string with xAI-themed cryptocurrency promotion. Palo Alto Networks’ Unit 42 described a campaign using websites that impersonated xAI and promoted token presales with aggressive return claims. That association does not establish that every use of the string is legally proven fraudulent, but it is a strong reason not to treat the name as an xAI endorsement. The Unit 42 post is at LinkedIn.
How to check an alleged xAI token or product
- Look for the announcement on an official xAI domain such as x.ai or the official Grok product site.
- Verify that the announcement comes from a verified official xAI account, not a look-alike profile.
- Require technical documentation, a product page, press release or regulatory disclosure identifying the issuer.
- For a token, check the contract address, identifiable issuer, independent audit and whether the address is consistent across official channels.
- Treat guaranteed or unusually high returns, urgent presales and celebrity branding as warning signs.
- Never provide a seed phrase, send funds or connect a wallet to an unverified site.
What is established—and what is not
| Established in the cited reporting | Not established |
|---|---|
| TVA approved an additional 150MW supply request for MLGW’s xAI customer in November 2024. | That XAI78R is issued, endorsed or owned by xAI. |
| Colossus began with roughly 8MW of grid capacity and later reached about 50MW through an interim upgrade. | That the site continuously consumed 150MW. |
| The approval related to xAI’s Memphis Colossus facility. | That 150MW was dedicated to an XAI78R token or product. |
| Environmental and grid-impact objections were publicly reported. | That all 100,000 GPUs operated simultaneously at maximum load at all times. |
The accurate reading is therefore narrow: xAI obtained a reported 150MW utility-power path for its Memphis supercomputer in November 2024. That real infrastructure event does not validate the unrelated XAI78R claim.
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