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Are Memphis Police Over-Charging for Marijuana?

Memphis simmered in the July heat as a police cruiser pulled over a blue Nissan Altima motoring through the Downtown business district. The car’s temporary tag had expired days earlier, an oversight police often resolve by issuing a citation.

But this traffic stop took a more serious turn when a Memphis Police Department (MPD) officer said he “could smell an odor consistent with marijuana coming out of the vehicle.’’

After questioning a female passenger, police found slightly more than a half-ounce of marijuana in her purse — a small but critical amount that led officers to arrest the family-focused grandmother on a felony drug-trafficking charge. 

As a special task force begins reviewing U.S. Justice Department claims of abuse by MPD during traffic stops, reform advocates say the woman’s arrest is yet another example of overly aggressive policing in Memphis.

“It’s absolutely a trumped-up charge,” said Claiborne Ferguson, a longtime Memphis defense attorney who reviewed the July 2, 2024, police affidavit filed against the woman. He has no official connection to the case.

The woman, a cancer victim, said she is no drug dealer and doesn’t even smoke that much.

“It was crazy,” said the woman, who asked not to be identified. Although the charge against her was later dropped, she said she fears any association with a criminal charge. “I’m a real-life good person. I treat everyone with respect,” she said.

The incident is one of 13 traffic-stop cases identified by the Institute for Public Service Reporting in which Shelby County law enforcement officers signed felony marijuana affidavits, only to see those charges vacated in court. Attorneys who reviewed the affidavits for The Institute said they appeared deficient in supporting felony charges of intent to sell.

The charges — which often involved warrantless searches of vehicles — led arrestees to spend several hours or more in jail.

Dominique Hodges in the car she was arrested in back in December. The charges against her were later dropped. (Photo: Micaela Watts)

“I lost my job,” said Dominique Hodges, 26, who was arrested in December. Prosecutors dropped the charges in February, but not before she spent a terrifying night at Jail East, Shelby County’s women’s holding facility, and paid $700 in attorney fees and costs. She said the charges hanging over her caused her to lose a good-paying maintenance job.

“I cried and I cried,’’ she said of her trip to jail. There, jailers conducted an invasive search, she said. Later, Hodges watched in fear as an irate arrestee hit her fist against a wall over and over. “I wouldn’t wish this upon my worst enemy,’’ she said.

Among the 13 arrestees, 12 were Black, including Hodges and the grandmother.

All the arrests were made after officers said they smelled marijuana and either requested consent to search or used the smell as probable cause to search vehicles without consent.

The 13 arrests included 10 by MPD, two by the Sheriff’s Office, and one by the Tennessee Highway Patrol.

Both MPD and the Highway Patrol declined comment. The Sheriff’s Office didn’t respond to repeated requests for comment.


A Memphis Police Department detective searches a car in October 2022 after officers said they spotted marijuana residue on the front console. Charges against the motorist were later dismissed at prosecutors’ request. (Photo: MPD Body Camera Footage)

Broad Police Discretion

The Institute identified the 13 cases while reviewing eight months of arrest data, including a six-month stretch between last April and September and a follow-up two-month stretch in December and January to assess patterns following the release of the Justice Department’s critical December 4th report.

Traffic stops reviewed by The Institute followed a general pattern: Motorists were pulled over for a missing headlight or taillight, tinted windows, expired or missing tags, failing to wear a seat belt, and occasionally for speeding or running a red light.

Officers then searched vehicles after saying they smelled marijuana.

Simple possession of small amounts of marijuana is a misdemeanor in Tennessee, which remains among a slim minority of states that haven’t legalized medicinal or recreational marijuana. In Shelby County, where marijuana prosecutions have been deprioritized, police can issue a misdemeanor citation for simple possession without making an arrest. At times, officers take no action at all when stopping motorists with small amounts of marijuana, according to interviews conducted by The Institute.

But a felony charge brings a guaranteed trip to jail.

Police generally have broad discretion when making arrests. Probable cause to arrest requires a lower threshold of evidence than proof required at trial, and police tend to charge suspects at the highest level available, defense attorneys said.

Attorneys who reviewed arrest affidavits for The Institute said some appeared to be borderline cases or “close calls” in establishing probable cause for a felony charge. In one case, a motorist charged with felony intent to sell was found with a small amount of marijuana and three guns, including a semiautomatic rifle. Records suggest it was a difficult matter to sort out: All the guns turned out to be legal. Tennessee doesn’t require permits to carry guns, and it allows most people other than individuals convicted of felonies to freely transport them in cars.

Such incidents require quick judgments often made under high-stress conditions, police say.

“It’s very tough because you don’t know what’s in that car,’’ said Mike Williams, a former patrolman and past president of the Memphis Police Association, a labor union. “I couldn’t imagine me personally being out there in the streets right now … because everybody has a damn gun. And a lot of these young people that are running around with these guns, they’re not afraid to use them.”

But reform advocates say there is a delicate balance between protecting public safety and eroding community trust. Even if a charge is later dismissed, arrests often pose hardships including job loss along with stiff fees and court costs. Often, vehicles are seized.

“So now because I get caught with this … I have to hire a lawyer. I have to go pay a bond. Get probation,’’ said Keedran Franklin, a criminal justice reform advocate who contends police often target people of color. “That … may put me $30,000 in debt.’’

Overall, African Americans represented 89 of 93 Shelby County defendants (96 percent) identified by The Institute as having been arrested between last April and September after officers said they smelled marijuana. Many of the traffic stops, which often led to charges unconnected to marijuana possession, were clustered in African-American neighborhoods in Orange Mound, Frayser, Hickory Hill, and South and North Memphis.

MPD’s focus on saturation patrols in “high-crime” neighborhoods and the potential for harassment alarmed Justice Department officials, who noted in the December 4th report that Memphis police stopped one Black man 30 times in three years.

Shelby County District Attorney Steve Mulroy said police need discretion when making arrests but conceded that evidence at times can’t support felony charges.

“It is not at all uncommon for the police to bring us a charge for felony intent to sell marijuana and we reduce it to a misdemeanor. And largely that’s not necessarily because we’re saying that the police over-charged but because there is a difference between the amount of evidence you need for probable cause to arrest and the amount of evidence you need to prove something beyond a reasonable doubt at trial,” Mulroy said.

“So I’m not going to use a heavily charged word like abuse, but I will say that given the fact that the arrest itself can be disruptive to someone’s life, and given that it seems like this particular charge seems disproportionately targeted on the African-American community … one can see how a really aggressive posture of arresting and charging felonies for what may simply be simple marijuana possession can be problematic. It may be something that maybe this task force can look at.”

The task force formed when Mayor Paul Young tapped former federal Appeals Court Judge Bernice Donald to review Justice Department allegations outlined in its December 4th report. The 70-page report found MPD often conducts unlawful stops and searches, discriminates against Black people, and uses excessive force.

Tennessee is among a slim minority of states that doesn’t allow medicinal or recreational use of marijuana. (Photo: Marc Perrusquia)

Small Amounts, Big Charges

It was three days before Christmas, and Dominque Hodges was out partying with friends. They took her battered Chrysler Sebring, though she was riding as a passenger that night. When police spotted the car — missing rear bumper, burned-out front headlight, invalid drive-out tags — they pulled it over.

“They snatched me out of the car,’’ Hodges recalled.

According to her arrest affidavit, police searched the car after smelling marijuana and found a bag containing 18 grams, roughly enough to roll 18 to 36 marijuana cigarettes. Hodges said she admitted the pot was hers, arguing that she’s a smoker not a dealer.

“I’m telling them, ‘Why am I going to jail for this little bit? … Look, my mom is sick. I don’t have nobody that’s going to come and bail me out of jail.’’’

Under Tennessee law, a person who possesses a half-ounce (14.175 grams) or more of marijuana with the intent to manufacture, sell, or deliver is guilty of a felony punishable by 11 months to 60 years in prison depending on the amount and an individual’s prior record. Selling less than a half-ounce is a misdemeanor.

But defense attorneys say many officers don’t seem to understand that simple possession — even in amounts greater than 14.175 grams — is still a misdemeanor if the defendant lacked intent to sell.

“I have regularly heard officers and prosecutors say more than half [ounce] is a ‘felony amount’ but that is incorrect,’’ said Ben Raybin, a Nashville-based defense and civil rights attorney. “There still has to be an intent to sell, deliver, or manufacture.’’

Courts have ruled that to prove intent, authorities need evidence of something more than mere weight. They need other supporting details such as finding marijuana packaged in multiple baggies, large amounts of cash, firearms, ledgers, digital scales, or other indicators of a drug sale.

Yet repeatedly, records show, officers arrest motorists on charges of felony intent to sell marijuana with scant supporting evidence of an indication to sell — charges that are later vacated in court. The cases reviewed by The Institute were dropped by prosecutors via an action known as nolle prosequi, or the abandonment of a criminal charge.

In the July 2, 2024, arrest of the grandmother in Downtown Memphis, for example, police reported finding 16.1 grams in her purse. In an affidavit of complaint sworn out before a judicial magistrate, police listed no other evidence indicating an intent to sell. The woman was booked into Jail East, Shelby County’s detention facility for female arrestees. The charge was later dropped.

“I don’t see the slightest hint of evidence that she possessed it with the intent to manufacture, deliver, or sell it, so in my opinion this should have been charged [with] a misdemeanor rather than a felony,’’ Raybin wrote in an email. “If that was her only charge [as it was], she should have been given a citation rather than placed under a custodial arrest.”

Defendants charged with misdemeanors often are cited and released without being booked into jail. In some instances of simple marijuana possession, officers don’t even do that much, some allege.

“Most of the times [when] we get stopped, the police put the weed right back in the car,” Hodges said.

Recently retired General Sessions Court Judge Bill Anderson said that he’s heard similar accounts.

“It’s gotten out to the rank-and-file police on the street that the DA is not prosecuting small amounts of marijuana,’’ Anderson said. “These officers … don’t like coming to court. They don’t like wasting their time having to write report after report. So if it’s a small amount, what I understand they’re doing is just throwing it away or telling them, open it up, throw it out on the street or something.”

Overall, officers seize relatively small amounts of marijuana when making traffic stops on Memphis streets.

Among the 93 odor-triggered arrests identified by The Institute, the median amount of marijuana confiscated was 20 grams. That’s roughly enough to roll 20 to 40 marijuana cigarettes.

Studies suggest traffic stops like these aren’t effective in reducing overall crime rates, but they can accumulate significant arrests. During one three-day stretch in June, The Institute found, MPD arrested at least 10 people after smelling marijuana, including five with violent arrest histories and another with glassy eyes and slow reactions who was charged with driving while intoxicated by marijuana.

In those 10 arrests, police confiscated two assault-style rifles, a Glock 17 handgun with a switch that converted it to a rapid-fire machinegun, and three other pistols.

A heat map of marijuana searches in Shelby County (Photo: Shelby County General Sessions Court Records)

Questions surround MPD’s supervision and training

Marijuana grown today is much more potent — and pungent — than in years past. Its smell wafts across Memphis, emanating from cars, seats at Tiger football games, street corners, and alleyways.

Still, attorneys interviewed for this story said they believe police at times manufacture claims that they smelled marijuana as a pretext to create probable cause to search a vehicle.

The Justice Department report articulated similar concerns.

“While officers often justify vehicle and pedestrian searches based on statements that they have smelled the ‘odor of marijuana,’ courts and MPD’s own internal affairs unit have found that those justifications are not always credible,’’ the report said.

“… A prosecutor described MPD’s explanations as sometimes ‘cringey’ and gave the example of an officer claiming to have smelled marijuana in a car that was going 60 miles per hour.”

It’s difficult to assess how widespread the problem may be.

“The problem is, I don’t know [the full extent of] the abuses because nobody’s forcing them to keep up any records of when they search a vehicle saying they smelled marijuana and not finding anything,” Ferguson said.

Again, the Justice Department articulated similar concerns.

“This data does not include hundreds of thousands of traffic stops that did not result in citations because MPD officers do not document the reason for those stops,” the report said.

But the report was unequivocal in stating that MPD engages in a pattern of illegal traffic stops, arrests, and evidence collection in violation of the Fourth Amendment that protects citizens against unreasonable search and seizure.

“The pattern of Fourth Amendment violations stems from MPD’s decision to prioritize traffic enforcement as a central method to address crime in Memphis, while at the same time failing to ensure that officers understand and follow constitutional requirements when they stop and detain people,’’ said the report, which followed an 18-month investigation launched after the January 2023 police beating death of motorist Tyre Nichols.

“… Supervisors rarely review traffic stops to ensure they meet constitutional standards. But they do measure officers’ ‘productivity’ based in part on how many stops and citations they generate.’’

Ferguson said he believes MPD’s struggles stem from either poor training or coaching by supervising lieutenants.

“It’s either bad training or it’s purposeful malicious prosecution in order to seize vehicles. That’s all it can be,’’ Ferguson said. “Either they’re completely not training these officers or they train them specifically to do this to get into the car.”

Memphis police at a traffic stop in 2022 (Photo: MPD Body Camera Footage)

The Justice Department Raised Similar Concerns

“Officers will, for example, write in reports that they smelled marijuana, but there will be no mention of the odor of marijuana on body-worn camera footage,’’ the report said.

Such a scenario played out in federal court last year when prosecutors dismissed gun charges against Cedric Jackson, now 33, after inconsistencies arose between police reports and body camera footage.

Officers wrote in an October 2022 affidavit that they “observed a green residue consistent with marijuana’’ on the console of Jackson’s Chevy Tahoe. Citing that as probable cause to search the vehicle, officers found a Smith & Wesson handgun that Jackson, a convicted felon, could not legally possess.

“I am having trouble with the search,’’ U.S. District Court Judge Thomas L. Parker said in a January 4, 2024, hearing after reviewing bodycam footage. “… If they were relying on noticing the residue of marijuana on the console, I didn’t hear anybody say so at the time. I watched several videos and so I did not … see a lot of discussion about that. There were no photographs of the residue on the console area, so the court finds that the government did not carry its burden to show that that was the basis for a search.’’

Though Parker later dismissed a defense motion to suppress evidence seized in the search, finding the items would have been detected later in a routine inventory search of the car, the case’s credibility appeared shaken by defense challenges. Parker eventually approved a motion by prosecutors to dismiss the case.

Asked why prosecutors moved to dismiss the case, a spokeswoman for the U.S. Attorney’s Office in Memphis declined comment.

Evolving  Marijuana Laws

Odor-related searches have grown complicated in Tennessee, in part because of law changes in other states. Tennessee is one of just 11 states where recreational or medicinal marijuana use hasn’t been legalized, according to the National Organization for the Reform of Marijuana Laws. Yet motorists on Memphis’ streets may be carrying medicinal marijuana bought across the river in Arkansas or across the border in Mississippi. Recreational marijuana can be purchased via a short, 90-minute drive into southern Missouri.

“Now [when they return to Memphis] they’re presumed to be a felony drug dealer,’’ said defense lawyer Michael Working. “… You’re coming back with more than 14.175 grams every time. It’s like, you know, you don’t go to Arkansas to buy legal beer and buy [just] one can of beer.”

In Shelby County, simple possession of small amounts of marijuana often is tolerated.

District Attorney Mulroy said simple possession prosecutions had been deprioritized by his predecessor, Amy Weirich, though the practice varied among individual prosecutors, he said.

“I think it’s more uniform now [in] that it is not a priority,” Mulroy said. “We still enforce it. I mean, it’s the law, right? We enforce it. But we’ve got so many more important things to focus on, like violent crime.” Though there is “no blanket rule,” misdemeanor marijuana cases can lead to community service followed by a dismissal of the charges, he said.

Consequently, police often won’t bring misdemeanor cases, defense attorneys said. What’s emerged is a sort of felony-or-nothing situation. And as courts have trimmed back on Fourth Amendment protections against unreasonable search and seizure, the smell of marijuana as justification to search a vehicle has become all but impossible for defendants to overcome, defense attorneys say.

But a Tennessee Supreme Court ruling last summer may change some of the ground rules for marijuana-related traffic stops.

In that case, State of Tennessee vs. Andre JuJuan Lee Green, the court ruled that the smell of marijuana alone is not enough for a search, finding that officers must consider “the totality of the circumstances” before conducting a warrantless search.

That case originated from Clarksville, Tennessee, where officers used a drug-sniffing dog to find an ounce of marijuana, baggies, and a gun during a February 2020 traffic stop. Defense attorneys argued the search was improper because a police dog can’t tell the difference between legal hemp and illegal marijuana. Both are varieties of the same species. Congress legalized hemp in the 2018 Farm Bill and Tennessee followed suit in 2019.

The court rejected a defense motion to dismiss the case. Although it found that “the legalization of hemp has added a degree of ambiguity to a dog’s positive alert,” it ruled the search was merited by a totality of circumstances that included “suspicious answers” that the car’s occupants gave to officers’ questions and a backpack seen in plain view inside the car. Both the car’s driver and passenger denied ownership of the backpack.

Raybin said the Green case means officers will no longer be able to conduct probable cause searches of vehicles based solely on the odor of marijuana.

“In my opinion that is directly precluded by the Green case and everything should be thrown out,’’ said Raybin, who co-authored a friend-of-the-court brief in support of dismissing charges in the case.

How much actual impact the ruling will have remains to be seen, however. Officers don’t need much in the way of additional factors to justify a search, Raybin said. It can involve something as simple as a defendant appearing nervous, “sweating profusely,” or making inconsistent statements.

“… It still won’t take too much’’ to justify a search, Raybin said. 

Data for this story comes from public records kept by Shelby County’s criminal courts on behalf of Shelby County residents. The county makes individual records available. These records were compiled and processed with a web programming tool that enables a user to efficiently compile and see all of the public records, and sort them to identify and analyze arrest patterns. The sortable records are kept on a server maintained by a criminal justice reform group, People for the Enforcement of Rape Laws. The Institute for Public Service Reporting (IPSR) pays a license fee to access these records and cover the cost of programming and maintenance. IPSR independently verifies the data through computer analysis, spot-checking, and other methods. The reform group has no input or ability to influence the reporting of these public records. IPSR retains full authority over editorial content to preserve journalistic integrity.  

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MPD to Run Oversight Program “It Never Liked,” Critics Fear What’s Next

This story originally appeared on the Institute for Public Service Reporting Memphis website here.

Critics fear a judge’s decision last week will weaken a long-standing federal order that bans the Memphis Police Department (MPD) from spying on citizens.

The ruling Wednesday by U.S. District Court Judge Jon McCalla modifies an order known as the Kendrick Consent Decree by replacing a private attorney who monitors police activities with two lawyers employed by the city of Memphis and assigned to the MPD.

The measure is endorsed by the American Civil Liberties Union of Tennessee (ACLU-TN), which successfully challenged MPD and the city of Memphis in federal court for illegally surveilling activists involved in protests against police abuse and other lawful dissent.

But Bruce Kramer, the lawyer who first sued the city in 1976 for MPD’s illegal political intelligence gathering, says the ruling is not in the public’s best interest.

Bruce Kramer
Bruce Kramer

“It’s not as bad as putting the fox in charge of the hen house. But the history of this is that the city has never liked this consent decree and has wanted it to end. This is just one more step towards that process,” Kramer said.

Rev. Elaine Blanchard, an activist who was followed by police and placed on a “blacklist’’ that banned her and scores of others from entering Memphis City Hall without a police escort, said the development is worrisome.

“I don’t believe the police have changed any,” Blanchard said. “I feel that they need oversight. Not from within themselves, but from outside of themselves.”

City officials were not able to immediately respond to a request for comment.

McCalla’s ruling approved the “Kendrick Consent Decree Sustainment Proposal,” filed as a joint motion by ACLU attorney Stella Yarbrough, city outside counsel Bruce McMullen and independent monitor Ed Stanton, a former U.S. Attorney in Memphis now in private practice with the Butler Snow law firm.

The 15-page sustainment proposal emphasizes that Stanton’s 2018 appointment was never intended to be permanent but “was meant to be temporary.’’ It contemplates a transition period ending between July 1 and Sept. 30 when Stanton will be replaced by two compliance officers on the city’s payroll.

“During this transition period, the city will designate at least two employees to serve as Consent Decree Compliance Officers,’’ the proposal says. It recommends two staff attorneys to fill these roles: MPD legal advisors James Thomas and Rosalyn Dobbins.

“Additionally, the Chief of Police has authorized the designation of an additional member to assist the Compliance Officers. The ideal candidate for this position is a current MPD officer with a law degree who will serve at the direction of Ms. Dobbins and Mr. Thomas,’’ the proposal says.

As a safeguard, the proposal calls for the compliance officers to receive “oversight and guidance” from three outside subject matter experts. The proposal recommends three individuals already on Stanton’s monitoring team: Rachel Levinson-Waldman, managing director of the Brennan Center for Justice’s Liberty and National Security Program; David N. McGriff, former deputy commissioner and chief of staff of the Tennessee Department of Safety and Homeland Security; and Dr. Theron L. Bowman, a former Texas police chief and president and CEO of The Bowman Group police practice consultancy.

Judge McCalla’s ruling followed a hearing last week when the city, the ACLU, the monitor and the subject matter experts all expressed support for the proposal.

The Kendrick Consent Decree was first entered in 1978 and modified five years ago following new revelations that MPD was again spying on political activists.

The initial decree in 1978 followed revelations that MPD had set up a special unit that used a network of informants and direct police surveillance to gather information on civil rights and Vietnam War protestors and others engaged in lawful political dissent. Created at the height of the Cold War with direct assistance from the FBI, MPD’s Domestic Intelligence Unit was one of a number of police “Red Squads” established across the U.S. in the 1950s and ’60s when many Americans feared the country was vulnerable to communist insurrection.  

The unit was exposed after a Vietnam War veteran learned police were keeping a file on his personal and political activities, prompting legal intervention by Kramer and the ACLU in 1976. A judge issued the Kendrick Consent Decree two years later after finding MPD routinely violated First Amendment guarantees protecting free speech and peaceful assembly.

Activist Theryn C. Bond signs her name to a list at a rally at City Hall in 2017 protesting a “blacklist” created by city officials that designated number of activists, journalists, and critics of Memphis police as threats to public safety.  (Micaela Watts)
Activist Theryn C. Bond signs her name to a list at a rally at Memphis City Hall in 2017 protesting a “blacklist” created by city officials that designated number of activists, journalists, and critics of Memphis police as threats to public safety.  (Micaela Watts)

In 2017, the public learned that MPD was surveilling a new generation of activists after The Commercial Appeal first reported evidence of a “blacklist” that included Blanchard and other private citizens who had no prior interactions with the criminal justice system. Blanchard and three others sued the city, and the ACLU intervened as a plaintiff.

The resulting federal investigation exposed additional digital surveillance that MPD used on activists and journalists who reported on local government.

In 2020, Judge McCalla sided with the ACLU, approving a binding agreement that established new ground rules for the use of surveillance technology. MPD would have to operate within these revamped guidelines under the watch of Stanton and a monitoring team, McCalla ruled.

Kramer said Stanton and the monitoring team “have done a fine job.” But he worries that the two city-employed compliance officers  won’t have the same view.

“They’re only going to see what the city wants to give them. It’s not the same as having a real advocate or adverse party reporting deficiencies,” Kramer said.

The proposal approved by Judge McCalla creates a “transition period” that will begin immediately. Stanton will stay on board to evaluate the current duties Dobbins and Thomas already have with MPD and whether they have the capacity to take on the newly created roles.

Following completion of the transition period, a “sustainment period” will begin and run for as long as 24 months. However, the city could move to terminate the sustainment period after 18 months, effectively ending oversight.

Kramer is betting they will.

McCalla could deny what Kramer feels is an inevitable request from the city, but Kramer asks, “Who’s going to contest it? With all respect to the ACLU, which covers the entire state, this isn’t at the top of their priority list.”

Stanton could not be reached for comment. Prior to Wednesday’s ruling, ACLU attorney Yarbrough issued a statement to the Institute for Public Service Reporting acknowledging the eventual conclusion of outside monitoring.

“While the consent decree remains in effect to safeguard free speech rights, the ACLU-TN, the city, and the Independent Monitor will continue to ensure the city’s compliance,” Yarbrough wrote. “The conclusion of outside monitoring in the coming year reminds us that the work of protecting Memphians’ First Amendment rights is ongoing.”

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Questions Surround Musk’s xAI Plans

(This story was originally published by The Institute for Public Service Reporting Memphis.)

Is Memphis moving too fast in its negotiations with Elon Musk?

The question troubles environmentalists like Sarah Houston as Musk fast-tracks plans to open an energy-intensive xAI supercomputer here later this summer.

“Data centers like this come with a lot of questions,’’ said Houston, executive director of the nonprofit group Protect Our Aquifer. Houston and others are concerned about xAI’s impact on Memphis’ resources.

The artificial intelligence plant already under development in southwest Memphis will require enough electricity to power 100,000 homes and consume up to 1.5 million gallons of water a day to cool equipment.

Negotiations between Musk, the Greater Memphis Chamber, and city-owned Memphis Light, Gas & Water have moved swiftly and behind closed doors since the tech billionaire and his team first approached local officials in March.

Supporters view xAI as a catalyst for Memphis to become a technology hub that could infuse hundreds of new jobs and millions of investment dollars into the local economy. That includes the potential for other Musk-owned businesses to set up shop here.

But a litany of questions has unfolded about xAI’s energy use and environmental impact since negotiations became public last month. In response, Musk’s swiftly evolving plans have incorporated measures to allay those concerns.

Among them is a plan to build a 150-megawatt substation to reduce the chance of any future power brownouts or blackouts. Talks also are underway to build a gray water facility that would use treated wastewater rather than precious drinking water to cool xAI’s equipment.

Still, critics say the discussions spearheaded by the chamber and MLGW are proceeding with too little public input.

“This is a terrible idea for Memphis. MLGW’s CEO is not elected, and neither is anybody in the Chamber of Commerce last time I checked,” said state Rep. Justin J. Pearson, D-Memphis, whose district includes the industrial swath of land where xAI is located. “It’d be really wonderful if people who are unelected did start to talk to people who are elected to represent the communities that they’re seeking to do business in, because they would have heard from our community that we don’t want this.”

Environmentalists urge caution. They point to Texas, where two Musk-founded companies received wide criticism in 2022 for proposing to dump treated wastewater into Texas’ Colorado River.

“It’s just like, they need to be forced to do the right thing,’’ said Chap Ambrose, a Texas computer programmer and environmental activist who lives next door to two Musk-owned companies, SpaceX and Boring.

Knoxville-based activist Stephen Smith, who is no fan of Musk, says he sees a huge opportunity for Memphis if it takes the time to carefully structure this deal. That includes holding Musk, best known for development of Tesla electric vehicles and rocket manufacturer SpaceX, accountable to the public.

“The negatives could very well turn into positives,’’ said Smith, executive director of the Southern Alliance for Clean Energy.

Water concerns

Water falling at Sheahan Water Pumping Station in December 2023.   (Karen Pulfer Focht)
Water falling at Sheahan Water Pumping Station in December 2023.  (Karen Pulfer Focht)

The announcement of xAi immediately triggered concerns about Memphis’ drinking water — sourced directly from the Memphis Sand Aquifer, which contains some 57 trillion gallons of millennia old, pristine water, a point of civic pride and the envy of many other cities.

There’s little chance of depleting that.

Even if xAI requires 1.5 million gallons of water a day — MLGW’s highest estimate —that would add only 1% to the city’s total daily draw on the aquifer.

“I’m not concerned with the quantity, I’m concerned with the quality,’’ said Daniel Larson, director of the University of Memphis’ Center for Applied Earth Science and Engineering Research or CAESER. 

Larson and others say a more realistic concern is that xAI’s demand for water could accelerate contamination of the Memphis Sand Aquifer.

The proposed xAI center would draw water from the Davis Wellfield in southwest Memphis, an industrial area that includes TVA’s Allen power plant and the city’s wastewater treatment plant.

CAESER studies have found large quantities of arsenic in the shallow aquifer above the Davis Wellfield. Studies also have identified cracks or breaches in the thick layer of clay separating the shallow and larger Memphis Sand aquifers.

“With an increased demand of one million or 1.3 million gallons of draw down, the question becomes what happens to the known contaminates just above our drinking water, like arsenic?’’ said Protect Our Aquifer’s Houston.

The greater risk of contamination could be alleviated by development of a gray water system that would use treated wastewater, rather than water from the aquifer, to cool xAI’s equipment.

MLGW is developing plans to build a gray water treatment facility to serve xAI and other industrial customers. Musk and his team are considering building their own gray water system, possibly by January, according to The Daily Memphian.

Amanda Garcia, a lead attorney with the Southern Environmental Law Center, remains skeptical. “I’m concerned about a lack of commitment on the part of xAI in their use of reclaimed water,” she said. “We’ve seen other industrial users come in and say, ‘Oh, we’re going to use reclaimed water,’ and then back out of that commitment.”

Deficient Community Outreach

The former Electrolux plant at 3231 Paul R. Lowry Road where Musk is developing his xAI “gigafactory of compute”.   (Karen Pulfer Focht)
The former Electrolux plant at 3231 Paul R. Lowry Road where Musk is developing his xAI “gigafactory of compute”.  (Karen Pulfer Focht)

Garcia’s concerns highlight a disconnect between xAI and the larger Memphis public. Companies that move to Memphis often forgo direct communication with neighborhoods surrounding their operations, and xAI is no exception.

To date, representatives with xAI have not held any townhall-style meetings with their neighboring communities. Media also cannot reach xAI directly. The company told the Memphis Chamber of Commerce that reporters can post their questions on X.

No representative responded to the Institute for Public Service’s questions posted on the public social media platform.

The lack of direct access means Memphians must learn about xAI through MLGW updates or an anonymous source that works exclusively with The Daily Memphian, which posts many of their xAI updates behind a paywall.

Houston said it would be up to organizations like Protect Our Aquifer to sustain pressure on xAI and Memphis officials to “keep the community informed and engaged on how we can truly ensure that this company follows through on a lot of really great things they said in the media. Because that’s not the track record the ownership (of xAI) has shown in the past.”

State Rep. Justin J. Pearson in southwest Memphis in March 2023.  (Karen Pulfer Focht)
State Rep. Justin J. Pearson in southwest Memphis in March 2023. (Karen Pulfer Focht)

State representative Pearson says Musk can’t be trusted. He’s equally skeptical of local decision-makers securing the xAI deal, saying they haven’t given residents of Southwest Memphis — an area already disproportionately burdened by industrial pollutants — much thought. 

“Our resources are continuously extracted for the benefit of companies. And our community is not feeling any of those benefits,” Pearson said.

Checkered record

Critics’ concerns include the checkered environmental history of Musk companies in other parts of the country.

Business Insider reported earlier this year that Tesla’s “gigafactory” in Austin took advantage of a new Texas law that allowed the company to exempt itself from the city’s environmental regulations. While Musk promised an “ecological paradise” when Tesla first moved to town, the company appears to be free to skirt regulations meant to ensure one.

Two other Musk-founded companies received an outpouring of criticism last year for attempting to dump treated wastewater into Texas’ Colorado River, which flows southeast through the state, into the Gulf of Mexico, and is separate from the Colorado River that drains the southwestern United States.

When Chap Ambrose, a computer programmer, watched The Boring Company slowly come to life in the cow pasture across the way from his house in the rural countryside east of Austin, he was initially excited. 

He was a fan of Musk. He signed up for the yet-to-be released Cyber Truck and subscribed to the Musk-founded Starlink internet service. That was in 2021.  

Today, Ambrose serves as an informal watchdog over The Boring Company. The company specializes in building underground tunnel infrastructure meant to alleviate surface-level traffic, among other functions. 

Ambrose and some of his neighbors took issue with The Boring Company and another nearby, Musk-founded company, Space Exploration Technologies Corp., attempting to dump treated wastewater in the Texas Colorado River.

The Boring Company had applied for a permit to treat wastewater and release it onto its land or into the river, the Washington Post reported. The firm planned to build its own wastewater treatment plant without connecting to a treatment system run by the nearby city of Bastrop, The Post reported. Under public pressure it reportedly later dropped the plan and agreed to connect to the city system.

Monitoring the two companies is tedious, Ambrose said. “(It) continues to be an exercise of documenting and learning how these things work and how the regulations are split up across half a dozen different agencies. [You learn] who you have to talk to, where and what they care about, and what other people care about,” he said.

Following a series of complaints, the company received its first fine earlier this year from the Texas Commission on Environmental Quality, just under $12,000 for ineffective erosion control at construction sites and illegal dumping of storm water. 

Ambrose’s advice for Memphians concerned about xAI’s potential impacts in Southwest Memphis is simple. 

“Learn what will be cheap and easy for xAI, and what regulations stand in the way,” said Ambrose. “That will give you a start.”

Megapacks

Doug McGowen, president and CEO of MLGW, told members of the Memphis City Council on July 9 that xAI plans to build a 150 megawatt substation.

McGowen’s update included another way that xAI would impact Memphis’ occasionally strained power grid: Megapacks — a proprietary development by Tesla. Megapacks are shipping container-sized battery packs.

The Tesla dealership on Germantown Parkway near Wolfchase Galleria  (Marc Perrusquia)
The Tesla dealership on Germantown Parkway near Wolfchase Galleria (Marc Perrusquia)

The Southern Alliance for Clean Energy’s Smith said the use of Megapacks would ease concerns about the need for brownouts.

“With the battery packs, they have developed this software that seamlessly integrates into the electric grid. You can charge those battery packs up at night or off-peak times, and then you can deploy them over an extended period of time during peak,” Smith said.

Megapacks  could significantly reduce the strain on MLGW’s  system during times of peak demand. And, from Smith’s view, a commitment from xAI to enhance the power grid’s capabilities could ultimately help MLGW break up with the Tennessee Valley Authority, which would be the biggest benefit possible with xAI, he said.

For myriad reasons, Smith has long advocated for MLGW to leave TVA. TVA produces the electricity that MLGW buys and distributes. Smith says  TVA is the biggest obstacle to investing in renewable sources of energy in the southeast region.

“xAI has the potential to breakthrough a lot of antiquated thinking,’’ Smith said.

“If the mayor, if Doug McGowen, if city council say, ‘Welcome to our community. Yes, we want you to figure out a way for it to work for both on the water and the energy side and be a sustainable leader. But we also want to partner with you to think bigger about what is possible in Memphis.’” 

On July 22, Musk posted on X the xAI supercomputer powered up, and training with supporting employees had begun.