In a historic Memphis neighborhood, residents are raising alarms over a massive new artificial intelligence supercomputer, claiming it has worsened air quality and is impacting their health. The facility, operated by Elon Musk's xAI, is one of the world's largest and has become a focal point for a community grappling with the hidden costs of technological progress.
The supercomputer, named Colossus, was built in just 122 days to power the AI chatbot Grok. While city officials point to economic benefits like new tax revenue, people living in the nearby Boxtown community report new health problems and a persistent chemical smell since the facility began operations.
Key Takeaways
- Residents of Boxtown, a historically black Memphis neighborhood, report increased air pollution and health issues since xAI's Colossus supercomputer began operations.
- The facility will require 1.1 gigawatts of power and use one million gallons of water daily for cooling upon completion.
- xAI installed methane gas turbines to power the site, raising concerns about emissions in a county already known for poor air quality.
- While the project is expected to create only 200-300 jobs, it has generated $13 million in local taxes, with a portion allocated to the Boxtown community.
The Arrival of Colossus
In the race to dominate the artificial intelligence landscape, Elon Musk's xAI established a massive computing facility in Memphis. The project, named Colossus, was developed at an accelerated pace after local authorities waived some planning regulations, allowing an old appliance factory to be converted in just over four months.
The facility houses hundreds of thousands of processing units dedicated to training Grok, xAI's answer to competitors like ChatGPT. The scale of the operation is significant. Once fully operational, it is projected to consume 1.1 gigawatts of power, which is roughly 40% of the entire city's energy needs on a typical summer day.
A Thirst for Power and Water
To cool its vast number of processors, the Colossus facility will pump approximately one million gallons of water each day. This volume is equivalent to one and a half Olympic-sized swimming pools, highlighting the immense resource demands of large-scale AI development.
When the local power grid could not meet the immediate energy demands, xAI installed dozens of methane gas turbines on-site. This decision has become a central point of contention for residents who live just a mile away.
A Community's Concerns
Boxtown, a Memphis neighborhood established by freed slaves in 1863, is now on the front line of this technological push. Residents, many of whom have lived there for decades, say the environmental situation has noticeably deteriorated since Colossus went online.
Sarah Gladney, a 71-year-old retired postal worker, described a distinct change in the air. “Prior to xAI, we were dealing with more of a waste smell. Like poop,” she said. “This is more like a chemical-type smell.”
Others have reported more direct health impacts. Willie Joe Stafford, 81, attributes a persistent cough to the facility's emissions. He also noted that the water pressure in his home has dropped to a trickle, which he believes is connected to the supercomputer's immense water consumption.
“My battle is over them bringing more pollution into a small already polluted black neighbourhood,” said Batsell Booker, 66, whose daughter is recovering from cancer. He noted the area already has abnormally high rates of the disease.
These concerns are amplified by Shelby County's existing reputation for having the poorest air quality in Tennessee. The county is reportedly responsible for half of the state's childhood asthma admissions.
An Economic Promise with a Social Cost
For Memphis, a city with the second-highest poverty rate in the United States, the arrival of a major tech project offered a glimmer of economic growth. However, the direct employment benefits are expected to be modest.
John Zeanah, the city's chief of development and infrastructure, acknowledged this reality. “I think it was understood early on that this wasn’t going to be an operation that would be a large producer of jobs,” he stated, estimating the number of new positions to be between 200 and 300.
Tax Revenue vs. Local Impact
In its first year, the Colossus facility generated $13 million in taxes for the city and county, making xAI a top taxpayer. Of that amount, a quarter has been specifically set aside for community projects in Boxtown. This financial contribution stands in contrast to the environmental and health concerns voiced by the people living there.
Despite these financial commitments, which also include a promise to build an $80 million wastewater plant, many residents feel the trade-off is not worth it. The perception is that their community is bearing the environmental burden for a project that offers them little direct benefit.
When asked for comment about the residents' concerns, xAI's response was a brief three words: “Legacy media lies.”
A New Civil Rights Frontier
The conflict in Memphis is being framed by local leaders as a modern chapter in the civil rights struggle. State Representative Justin Pearson, who represents the district, has been a vocal critic of the project.
“What happens when what’s being broken are people?” Pearson asked, challenging the tech industry's mantra to “move fast and break things.” He argues that the environmental cost of AI is a critical question that users should consider. “There’s a cost to using this technology.”
Pearson and other activists are pushing back against the tide of AI investment, demanding that corporations consider the human and environmental impact of their operations. They argue that if Silicon Valley companies are going to build in their communities, the investment should be in people and infrastructure, not just data centers that strain local resources.
“If the headquarters is in Seattle, in Silicon Valley and in Los Angeles, what part have we got? We’ve got the hindquarters,” Pearson said. “So give us the headquarters. Give us that level of investment that helps to transform our community. Hire people in this city.”
Meanwhile, construction is already underway on a second, even larger facility, dubbed Colossus 2, just a few miles away. For the residents of Boxtown, the fight over the air they breathe and the future of their community is far from over.