menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

Inside the Memphis Chamber of Commerce’s Push for Elon Musk’s xAI Data Center

4 0
22.08.2025

by Wendi C. Thomas, MLK50: Justice Through Journalism

This article was produced for ProPublica’s Local Reporting Network in partnership with MLK50. Sign up for Dispatches to get our stories in your inbox every week.

Marilyn Gooch was already skeptical about one of her newest neighbors, xAI’s supercomputing facility, when her cousin walked across the street in June with a blue mailer from the Greater Memphis Chamber of Commerce.

Her cousin didn’t know what to make of the postcard featuring the logos of nine local, state and federal agencies and the chamber’s assurance that billionaire Elon Musk’s artificial intelligence company operated “in full compliance with all applicable federal, state, and local regulations and oversight.” The facility — part of Musk’s bid to dominate the AI market — opened at a breakneck pace almost a year before, brought to Memphis, Tennessee, largely due to the efforts of the local Chamber of Commerce.

Across the country, communities are grappling with the boom of data centers and supercomputing facilities, which consume voracious amounts of electricity and water and can emit smog-producing pollutants. In places from Maricopa County, Arizona, to Prince William County, Virginia, residents have used zoning restrictions as a means to keep supercomputers at bay — an option not available to Memphians because the xAI building was already zoned for industrial use.

Since the opening of the xAI supercomputing facility, Gooch had joined residents and environmental justice advocates sounding off at meetings about potential health impacts of xAI. She learned about the area’s already high concentration of toxic emissions from nearby industrial plants, including an oil refinery, and the county’s high asthma rates.

Of greatest concern: the emissions from the dozens of methane gas turbines — each roughly the size of a semitrailer — that were initially used to power xAI’s new facility located less than 2 miles from her home in southwest Memphis. Based on its analysis of county health ordinances and federal regulations, the Southern Environmental Law Center has asserted in multiple official and legal documents that these turbines violated the Clean Air Act and should never have been allowed; the Shelby County Health Department disagrees.

Gooch saw the mailer as an attempt to quiet their concerns.

First image: Heat shimmers above gas turbines at the Memphis, Tennessee, xAI site in April. Second image: Marilyn Gooch. (First image: Ariel J. Cobbert for MLK50. Second image: Kevin Wurm/MLK50/CatchLight Local/Report for America.)

In the face of intense public opposition, the chamber has gone to unusual lengths to promote xAI, whose $12 billion investment the chamber believes will transform the shrinking city into a global hub of technological innovation. The chamber wants Memphis to be known as part of the “Digital Delta,” expanding beyond its blue-collar identity as the distribution capital of the country and FedEx headquarters.

This all-out push includes a five-member special operations team to provide what it calls “round-the-clock concierge service” to ensure “seamless execution of the company’s rapid expansion plans.” The chamber also managed xAI’s PR efforts, and while it has not held open public meetings about xAI, it hosted at least 12 invitation-only meetings to tout the project’s benefits to Memphis. And the chamber sent its first mailer in recent memory, which spread incorrect information about the governmental oversight in place to monitor Musk’s new facility.

Former chamber president Beverly Robertson said she can’t recall another instance of the chamber doing such a full-court press for a company — but then again, she and others noted, Memphis has never attracted a company of xAI’s scale.

The public had no input into the opening of........

© ProPublica