Categories
News News Blog News Feature

Greater Memphis Chamber Addresses xAI Concerns During Webinar

The Greater Memphis Chamber attributes their “lack of transparency” regarding the xAI project to market stability and competitive advantage.

“Confidentiality is actually really important when it comes to economic development projects,” Bobby White, chief government affairs officer for the Chamber, said. “We have unfortunately experienced this in the past where projects and information about them have slipped and become public knowledge, and we’ve lost projects.”

These comments were made Wednesday during a webinar hosted by the Greater Memphis Chamber to address community questions about xAI’s turbines, water usage, and more. Media personality Kontji Anthony moderated the conversation and called xAI the biggest economic development project in Memphis history and noted the controversy looming around it.

Residents and elected officials, such as Councilwoman Yolanda Cooper-Sutton and Representative Justin J. Pearson, have criticized the city and company for the absence of public input and knowledge. Many have voiced concern about the effects it will have on citizens in Southwest Memphis.

Anthony said the purpose of Wednesday’s forum was to clear up misconceptions around the project.

White said some of these misconceptions had been heard repeatedly — specifically those surrounding water usage. He clarified that the company is not using 1 million gallons of water a day to cool the supercomputer. Instead, it is operating on a closed loop system, with no water from the aquifer being used for industrial use.

“Essentially water comes in and cools the supercomputer,” White said. “That closed loop system is why xAI is paying a water bill that’s probably comparable to what you’re paying at your house.”

He estimated that xAI is paying less than $1,000 every month because it is recycling water. He also said the company is building Memphis’ first-ever wastewater recycling facility, marking an $80 million investment.

The Chamber wanted to bring in experts to engage in conversation about gas turbine usage. Recently, the Southern Environmental Law Center ( SELC) found that 35 turbines had been operating near the facility — 20 more than previously reported.

Shannon Lynn, a principal consultant for Trinity Consultants, located in Little Rock, Arkansas, said both the temporary and permanent turbines have sparked concern. Lynn said only 15 are set to be permanent, which the company has submitted permits for.

Lynn noted concerns about formaldehyde, nitric oxide, and dioxide emissions. He said the turbines are natural gas fired and “simple products of combustion.”

“If you burn gas, you’re going to get products of combustion, and that’s what you have with these turbines,” Lynn said.

A viewer asked Lynn if he would feel safe living in close proximity to the turbines. Lynn said he has had experience with this in Arkansas, as a data center was built within two miles of his home. He said if the control technology, equipment, and programs were in place along with working with a regulatory body he would feel safe.

Ted Townsend, president and CEO of the Chamber, said the city is already seeing the positive effects of landing the “world’s largest supercomputer,” representing a “tremendous investment.”

He said this deal has attracted other companies to Memphis, creating more jobs and investments into the Memphis economy.

“Success is now,” Townsend said. “I think over the next five, 10, 20 years you’re gonna see a higher concentration of this tech innovation and we’re really the epicenter of AI computing if you think about having the power of a supercomputer localized right here in Memphis.”

Categories
News News Blog News Feature

Health Department To Hold Public Hearing for xAI Air Permits

A resolution for the Shelby County Health Department to host a public hearing regarding xAI’s air permits has been passed by the Shelby County Board of Commissioners.

The resolution, sponsored by Commissioner Britney Thornton, urged the Shelby County Health Department to host a public meeting “prior to the approval or denial of the permit submitted by CTC Property LLC, an affiliate of xAI for the long-term operations of 15 methane gas turbines in South Memphis.”

Keshaun Pearson, executive director of Memphis Community Against Pollution, said this resolution would suspend the air-permitting process as the permit is not for the “current pollution” but “more pollution,” as xAI intends to bring more turbines in.

Groups such as Young, Gifted, and Green, MCAP, and Black Voters Matter along with several community members have openly condemned the project — with the news of the turbines operating for almost a year further amplifying outrage.

“Elon Musk holds nothing but malice for the people of Memphis [and] Shelby County,” Brandy Price said during the public comment section of the meeting. “To vote in favor of anything that aids Elon Musk will be a stain on yourself.”

Several people have spoken about the environmental risks that the project poses. Jonathan Reid, a resident of South Memphis, urged the commission to not only vote in favor of public hearings, but to “bring science to the table” when evaluating the project.

“I would like to know down the road when Elon Musk do[es] all this gas stuff what’s going to happen to the health of South Memphians?” Barbara Denton, a 72-year resident of South Memphis said. “Health is not being considered. All y’all want is money. It’s all about politics and money when it comes to South Memphis. Why does South Memphis have to get the neglect of being Black – mostly 90 percent? If y’all want to move something, move it Downtown. Let’s move it Downtown and see how it works for you.”

Dr. Michelle Taylor, director of the Shelby County Department of Health, acknowledged the community’s comments and said the public comment period is open now through April 30th. Residents can review xAI’s permit application and leave comments through the department’s website.

“We only can do as much as current legislation allows us to do,” Taylor said. “We did request an EPA community assessment. We requested, twice, in two letters to the EPA in August.  We received a response on November 1 of 2024 saying they could not do the report.”

Taylor assured that the Health Department is committed to being held accountable by both the commission and the community.

The resolution passed 8-3 with one abstaining from voting.