On this week's Behind the Headlines on WKNO/Channel 10, Doug McGowen, President and CEO of Memphis Light, Gas & Water (MLGW), and Ursula Madden, MLGW's Vice President of Corporate Communications, joined host Eric Barnes and Daily Memphian reporter Sam Hardiman to discuss rising energy demands, power grid upgrades, and support for low-income customers.
A significant portion of the conversation focused on xAI, the tech company building two major data centers in Memphis. The first, located on Paul R. Lowry Road, is nearly entirely online and will eventually draw 300 megawatts of power. The second facility, situated in Whitehaven, could require up to 1.1 gigawatts, though that request has not yet been approved by the Tennessee Valley Authority (TVA).
"They have requested power from TVA. That has not yet been studied and approved," McGowen said. He mentioned that xAI is exploring the construction of a private natural gas plant just across the state line in Southaven, Miss. "We just don't have 1,000 megawatts of power laying around," he added. "So, if you want to put your data center here, you're going to have to generate power on your own."
With public concern growing around the project, particularly in nearby neighborhoods, Madden emphasized that MLGW has tried to maintain transparency. "We've been very transparent," she stated, directing viewers to mlgw.com/xai for updates.
The conversation also addressed federal funding cuts that could impact utility assistance. In 2024, approximately 25,000 MLGW customers received a combined $17 million in help through the Low-Income Home Energy Assistance Program (LIHEAP). Anticipating future reductions, MLGW has launched the "Power of Giving Fund" to support its Plus-1 program, which helps customers struggling to pay their bills.
McGowen also highlighted recent reliability improvements tied to infrastructure upgrades and stepped-up tree trimming. "Since 2023, we've cut outage minutes in half," he said. "People are actually feeling that." He added that improved communication during outages has also helped rebuild trust with customers who, in the past, often felt left in the dark — literally and figuratively.
