SpaceX has unveiled the design and infrastructure plans for its Colossus 2 AI training cluster, located across Tennessee and Mississippi. The facility will utilize a Tesla Megapack system with a capacity of 3.3 GWh, which the company describes as the largest grid-connected battery installation in the United States.
The project involves significant local investments in Memphis. SpaceXAI is spending $35 million on a 150 MW substation and an additional $20 million on a second substation. These upgrades are designed to connect to the grid without imposing costs on the local utility company, MLGW, or residential homeowners.
Environmental infrastructure is also a priority, with $360 million allocated for a wastewater treatment plant. This facility is designed to process 10 million gallons per day, which is expected to reduce annual water extraction from the Memphis aquifer by approximately 3.64 billion gallons.
The company is investing millions in noise mitigation, including sound walls and specialized turbine technology. Since 2024, SpaceXAI has reported total regional investments exceeding $90 billion, supporting 7,500 jobs. The current temporary turbines are scheduled for full decommissioning by July 2027.
