XAI has promised to resume construction next year on a water recycling plant to support one of its Memphis data centers, after it abruptly stopped work on the facility two months ago. Memphis Mayor Paul Young (D) posted on X that SpaceX President Michael Nicolls had “committed to resuming construction on the recycled wastewater treatment facility no later than” the first quarter of 2027. The facility would clean wastewater from the city for reuse by both xAI and the Tennessee Valley Authority. Elon Musk, the company's founder, said on social media that work on the plant could even start as soon as the fourth quarter. The company led by Musk sparked outcry in April when it abruptly announced it was stopping work on the water recycling plant. At the time, Musk said the company needed to “focus on finishing” a second data center in the area. SpaceX purchased xAI in February, and Musk has said he plans to change the company's name to SpaceXAI.