On May 21, Musk disclosed on Tuesday that the escalating scale of data centers within the technology industry could lead to a bottleneck in power generation capacity for artificial intelligence development by mid-2024. During an interview, he disclosed that his AI venture, xAI, intends to construct a gigawatt-scale facility in the vicinity of Memphis, Tennessee, with an anticipated completion timeframe of six to nine months. According to the U.S. Department of Energy, 1 gigawatt of power generation capacity is akin to that of a standard nuclear power plant. Musk emphasized that AI faces three significant hurdles in scaling up: chips, transformers, and power generation capacity. He noted that while the transformer shortage is being addressed, the power generation shortfall will also be tackled, forecasting that from mid-2024 through the end of the year, people may confront power generation challenges. Earlier in February, Google had also cautioned that the United States is grappling with a power crisis and has embarked on exploring nuclear energy applications to mitigate potential grid instability issues arising from renewable energy sources.