xAI in Memphis: A Case Study on AI Data Centers & Environmental Justice Issues

As technology accelerates with the development of Artificial Intelligence, it’s creating huge demands on energy systems nationwide. These demands frequently exacerbate environmental injustices, creating energy and environmental burdens for already-marginalized, frontline communities. Environmental justice (EJ) advocates in Memphis, Tennessee, are fighting for guardrails and transparency around the development of an Elon Musk-owned xAI data center. XAI wanted to move more rapidly than local utility providers could provide the massive amount of power xAI required, so the company quickly set up its own methane gas-fired power plant, worsening smog in a community that already fails to meet minimum federal standards. Even after local EJ advocates raised the issue, local air regulators looked the other way and did not require xAI to get a permit before operating the power plant. EJ advocates continue to raise questions and demand accountability from xAI and all of the local agencies that are enabling the company to profit at the expense of the health and well-being of lower-wealth, predominantly Black Southwest Memphis.

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