Memphis AI data center draws Boxtown pollution fight

Residents and advocacy groups in South Memphis are fighting gas turbines that power SpaceXAI's Colossus I data center near Boxtown, a predominantly Black neighborhood with a long history of industrial pollution.

Local campaigners say the turbines add air and noise pollution to an area they describe as already neglected by officials. SpaceXAI has said its mobile turbines are equipped with advanced emissions controls and that monitoring shows local air quality meets or exceeds Environmental Protection Agency standards.

Water use is also part of the dispute. Sarah Houston of Protect Our Aquifer said Colossus I pumps 1.2 million gallons of groundwater a day from the aquifer that supplies Memphis with drinking water to cool its supercomputer. SpaceXAI had promised a water reuse facility, but that project has been suspended.

Memphis Mayor Paul Young recently announced a plan to redirect $3.35 million in tax revenue from Colossus I to affected communities. The facility generated $12 million in tax revenue, according to 2026 data cited in the report.

Advocacy groups and experts say SpaceXAI installed turbines without a permit or public consultation. Laura Thoms of Earthjustice, which represents the NAACP in a suit against SpaceXAI, said the Clean Air Act requires a permit before construction begins. In June, the Justice Department asked that the NAACP complaint be thrown out, citing national security matters.

SpaceXAI said in late July that it would dismantle the turbines and replace them with a power plant that complies with rules. Opponents say the deal gives the company until July 2027 to complete the work.

The dispute extends beyond Memphis. In Southaven, Mississippi, residents near SpaceXAI's Colossus II data center describe constant noise from 69 turbines powering the facility. A third data center has been built near Colossus II, and a fourth is under construction, while residents and pressure groups say they have not been told how those facilities will be powered.