In South Memphis, residents of the historically Black neighborhood of Boxtown are pushing back against Elon Musk’s xAI supercomputer facility, citing pollution and health risks that they say outweigh promised economic benefits. The facility, built in just 122 days and powered by 35 unpermitted methane gas turbines, has become one of the area’s largest emitters of smog-producing nitrogen oxides.
Methane turbines release formaldehyde and other pollutants linked to asthma, heart disease, and cancer. Since xAI began operations in July 2024, respiratory illness rates have risen in Memphis and Shelby County, which already holds an “F” rating for air quality and is known as Tennessee’s “asthma capital.”
Despite these concerns, local officials have granted xAI temporary permits and touted the facility’s potential to bring up to 500 high-paying jobs and $13 million in annual tax revenue. But residents worry that the benefits won’t reach the communities most affected. “The amount of tax money is not worth our lives,” said State Rep. Justin Pearson, who lives in the area.
Boxtown’s legacy of environmental injustice—surrounded by refineries, chemical plants, and food processing facilities—has left residents skeptical of promises tied to tech-driven development. Community groups have raised $250,000 for an independent environmental study and are calling for stronger regulatory oversight.
As AI data centers expand nationwide, South Memphis may be a bellwether for how marginalized communities navigate the costs of technological progress.
See: “South Memphis Residents Skeptical of Musk’s xAI Economic Growth Claims as Pollution Concerns Grow” (October 1, 2025)
