Musk's xAI facility brings ‘opportunity' to Memphis, mayor says
(NewsNation) — The mayor of Memphis, Tennessee, believes Elon Musk's xAI supercomputer facility will help 'a community that is desperately in need of investment,' though some residents say otherwise.
The project will occupy an empty Electrolux factory located on the city's south side. It runs gas turbines, which release chemicals like formaldehyde and nitrogen oxides, in the process of powering his AI chatbot, Grok.
Some Memphians have said the tech facility is polluting the air and water in a historically Black, working-class neighborhood and have joined the NAACP to call for its closure.
'We are urging you again to ensure that xAI stops operating its unpermitted turbines in violation of clean air and open meeting act laws and to order xAI to pay penalties for operating in violation of the law,' the NAACP told county officials in a letter.
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But Memphis Mayor Paul Young sees it as an 'opportunity for us to benefit as a city.' The project is forecasted to generate $15 to $20 million in property taxes annually and is expected to create more than 300 jobs.
'It's in a community where 75 of the properties on the list for condemnation are located in that community — the second highest in our city,' Young told NewsNation. '[There's] one grocery store. So, there are some conditions in that community that require investment.'
Those unpermitted turbines, according to Young, are a work in progress.
'Well, they have 365 days to get the temporary turbines permitted, and they filed for the permits in January,' Young said. 'They're expected to have those permits by September.'
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Musk also wants to build a second, even more powerful data center about 10 miles away. Young told NewsNation he welcomes the investment, even with the billionaire's controversial name attached.
'My goal is to separate the project from the person and really look at what the value proposition is for our community,' Young said, adding: 'I certainly believe that the visibility that he has contributes to a lot of the pushback that we're seeing.'
In February, a man was arrested and charged with an act of terrorism for saying he was 'going to burn down' the facility.
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