Written by Nusrat Chowdhury

When Elon Musk’s artificial intelligence company, xAI, announced plans to build the world’s largest supercomputer facility in Southwest Memphis, the headlines celebrated a new era of innovation. The $6 billion “Gigafactory of Compute” promised hundreds of jobs and positioned Memphis as a potential global hub for artificial intelligence.

Beneath the promises of progress lies a familiar story of environmental neglect and systematic disregard for the people of South Memphis. For decades, the predominantly Black community has shouldered the environmental burden of the city’s industrial expansion. The arrival of xAI threatens to deepen that inequity unless Memphis demands better accountability and transparency.

A Community Already Struggling to Breathe

South Memphis has long been home to heavy industry. This includes a steel mill, oil refinery, and a now-closed coal plant. According to the EPA, facilities in the area account for 94% of Shelby County’s total air pollutants, and the American Lung Association has given South Memphis an “F” for ozone levels. By comparison, roughly one-third of U.S. counties receive ALA grades of C or lower.

Now, xAI facility plans to operate up to 20 gas turbines. These turbines emit nitrogen oxides that contribute to smog and can exacerbate respiratory conditions such as asthma and chronic obstructive pulmonary disease. Asthma prevalence in South Memphis is estimated at 15 –17%, approximately double the national average of 7.8%, indicating a community already vulnerable to air pollution.

Amanda Garcia of the Southern Environmental Law Center summed it up best: “Every day that the turbines are operating, they are polluting the air and doing significant harm to families in South Memphis.”

Environmental organizations, including the Southern Environmental Law Center, have noted that monitoring and permitting are essential to ensure operations comply with air quality standards and minimize potential impacts. xAI is currently completing the permitting process for these turbines, and regulators are reviewing compliance with federal and local standards.

Water: The City’s Most Precious Resource at Risk

Memphis sits atop one of the most pristine aquifers in the world, the Memphis Sand Aquifer, which supplies clean drinking water to nearly one million residents. But this vital resource is now at risk.The xAI facility is expected to use up to 1.5 million gallons of water per day for cooling. To put this in perspective, this is roughly the daily water use of 5,000 U.S. households, or about two Olympic swimming pools per day.

The facility is near the Davis Wellfield, which lies above shallow groundwater previously contaminated with arsenic from coal ash ponds operated by the Tennessee Valley Authority. Studies have identified at least 16 breaches in the clay layer that protects the aquifer, suggesting that over-extraction could increase the risk of contaminant migration.

xAI plans to build an $80 million “Colossus Water Recycle Plant” to reuse wastewater and reduce aquifer demand. However, permits and implementation details are still pending. Until the system is operational, Memphis Light, Gas & Water (MLGW) would supply the facility’s water from existing wells, highlighting the need to carefully manage resources to avoid straining local supplies.

Energy Hunger and an Overstressed Grid

The Grok AI model powering xAI’s supercomputer demands staggering amounts of energy. The company’s request for 150 megawatts (MW), enough to power 100,000 homes, has already ballooned to 300 MW and could reach 1,500 MW by 2030. That’s roughly one-third of Memphis’s current peak capacity.

This surge in energy use will test an already fragile grid. The 2022 winter blackouts exposed This level of demand places stress on the local electricity grid, which has experienced outages during extreme conditions, such as the 2022 winter blackouts. Experts note that large industrial loads require careful integration with the grid and investment in infrastructure to maintain reliability for both industrial and residential customers. Planning for renewable energy and energy efficiency measures could help manage these increases while supporting the city’s sustainability goals.

Environmental advocates warn that TVA’s willingness to prioritize industrial users like xAI could come at a steep price. As Councilwoman Yolanda Cooper-Sutton bluntly put it, “We can’t get good electricity on a good day.”

It is important that the city balances the electricity needs of residents with the demands of large industrial users to ensure reliable power for the community while accommodating new development.

Progress Shouldn’t Poison People

The xAI project highlights the broader challenge of balancing technological advancement with environmental and public health considerations. Economic development and innovation can coexist with environmental stewardship when operations comply with regulations, manage resource use responsibly, and maintain transparency with affected communities.

Stakeholders, including Protect Our Aquifer and the Southern Environmental Law Center, emphasize that adherence to permitting requirements, advanced emission controls, and water reuse strategies can help protect South Memphis residents while supporting AI development.

The Path Forward

Memphis faces a choice in how it embraces economic growth. Careful planning and regulatory compliance can allow the city to benefit from technological investment while maintaining clean air, safe drinking water, and reliable energy for residents.

For the xAI facility to become a responsible member of the community, its operations should be guided by regulatory oversight and sustainable practices. By aligning technological progress with environmental and public health protections, Memphis can position itself as both an innovation hub and a city that safeguards the well-being of its residents.

Edited by Arushi Gupta