Elon Musk, the wealthiest person on the planet, is building what he claims will be the world’s largest supercomputer, with power requirements comparable to those of 100,000 homes.

Residents in southwest Memphis, however, have concerns.

The project, part of Musk’s xAI artificial intelligence initiative, is located in a former manufacturing facility spanning over 550 acres. To meet its substantial electricity needs, xAI moved in nearly 20 mobile power plants fueled by natural gas before beginning operations in July.

This heavily industrialized neighborhood—already housing an oil refinery, a steel mill, and chemical plants—is experiencing worsened pollution, with local residents seeing no benefits from xAI’s presence.

“We’re seeing more days when it’s unsafe to be outside,” said KeShaun Pearson, president of Memphis Community Against Pollution and a lifelong resident near the xAI site.

Currently, xAI is developing its AI models in Memphis on thousands of high-powered computer servers, some trained on data from Musk’s social media platform, X.

Musk launched xAI as a competitor to OpenAI’s ChatGPT. Though he co-founded OpenAI, he departed in 2018 following disagreements with other founders. Concerned about the risks of artificial intelligence, particularly those he perceived in Google’s work, Musk rekindled his interest after chatbots like ChatGPT gained widespread popularity.

In the spring, the Greater Memphis Chamber and local officials reached an agreement to allow xAI into a former Electrolux facility, with hopes of an economic boost.

“Memphis is a hub of innovation,” said Mayor Paul Young, “and it’s a natural home for those seeking to drive change.”

xAI’s rapid move into Memphis is part of a larger trend as tech companies race to establish data centers and AI facilities. This expansion is expected to significantly increase electricity demand for decades to come.

Leading technology firms such as Amazon, Google, and Microsoft have been developing renewable energy projects, including solar and wind farms, and have recently invested in nuclear power to offset their power consumption.

This surge in demand, along with electric vehicle adoption and heating/cooling needs, strains the electrical grid, raising concerns similar to those voiced in Memphis.

After the xAI deal was announced in June, Memphis Light, Gas and Water assured residents via an online statement that xAI would cover all upgrade costs and that power availability for other customers would not be affected.

Nevertheless, the scale of xAI’s power needs required approval from the Tennessee Valley Authority (TVA), which oversees the region’s grid. This approval process has been delayed.

“We are still evaluating the proposal and their electricity requirements,” TVA spokesperson Julia Wise stated on Oct. 22.

In the meantime, xAI bypassed the grid by setting up the mobile natural gas plants.

Many nearby residents—a largely low-income, African American community—felt excluded from the decision-making, with no opportunity for public review or understanding of potential benefits.

“There’s a history of lack of transparency that leaves us worse off,” said Pearson. “There’s no trust and no real communication.”

Memphis has exceeded the National Ambient Air Quality Standards for the past three years, and 2024 is on track to do so again. The Environmental Protection Agency and the local health department are reviewing xAI’s mobile power plant use, with updates expected in late November.

The temporary gas plants are a stopgap while xAI awaits TVA grid access, expected by year’s end. The company requested up to 150 megawatts, enough to power a small natural gas plant or approximately 100,000 homes.

The Southern Environmental Law Center urged TVA to reject xAI’s request, prioritizing Memphis families’ power needs over xAI’s project.

The TVA has previously faced challenges during extreme weather, such as rolling blackouts in December 2022 when it was unable to meet peak demand. If xAI’s request is approved, environmental impact concerns extend beyond Memphis, as TVA relies heavily on fossil fuels to generate electricity.

TVA operates four coal-fired plants that collectively power about four million homes annually. While it plans to retire these plants by 2035, the reliance on natural gas remains substantial, with 17 natural gas facilities currently online.

xAI’s opponents argue that meeting its power demands would increase fossil fuel use by a federal utility, contrary to Biden administration goals for a cleaner energy sector.

“These communities already face significant pollution,” said Maggie Shober, research director at the Southern Alliance for Clean Energy. “This is just one more burden. It’s absurd.”