Environmental groups cautioned leaders on the effects — especially on electricity and water use — of the xAI facility announced Wednesday.
The tech company owned by Elon Musk plans to build the world largest supercomputer in Memphis. The announcement drew acclaim from area leaders for its promise of economic development.
Protect Our Aquifer, Memphis Community Against Pollution, and Young Gifted & Green said in a joint statement late Wednesday that, while they are thankful of tech industries’ interest in Memphis, facilities like xAI have environmental consequences.
Cloud-computing facilities like these use a lot of electricity for massive air conditioning units and generators, creating a high carbon footprint, the groups said. The Musk facility is expected to use enough electricity to power 100,000 homes.
“Before we welcome xAI with open arms, we must consider how an industry using such a tremendous amount of electricity will further impact communities already overwhelmed with pollution and a high energy burden, such as those around the xAI facility in Southwest Memphis,” reads the statement. “The energy burden measures how much of a family’s income goes to paying their utility bill. The national average is three percent, but in Memphis, the average is 27 percent. Will xAI bear the cost of TVA’s (Tennessee Valley Authority) fuel adjustment fee in times of high energy demand?
“More so, with our recent history of severe weather events and rolling blackouts, TVA and Memphis Light, Gas & Water (MLGW) must work closely with this facility to keep energy use off peak demand hours.”
The facility is also expected to need a million gallons of water each day for its cooling towers, they said. That water would come from the MLGW Davis Wellfield in Southwest Memphis, the groups said. The wellfield is where the Byhalia Connection Pipeline was to split and where levels of arsenic have been detected in shallow groundwater, they said.
“We encourage xAI to support investment in a city of Memphis wastewater reuse system to reduce strain on our water supply and drinking water infrastructure,” the statement said.
The air quality impacts of such a facility are unknown, they said. But they called on the Shelby County Health Department to to measure it and other environmental impacts of the xAI facility.
“Lastly, xAI should immediately consider the inclusion of binding community benefits agreements that enshrine its obligations to the local community, including targeted hiring, apprenticeship programs, and funding for neighborhood revitalization efforts,” the groups said. “We encourage Elon Musk and xAI to build solar for the site and invest in a greywater reuse facility to reduce the strain on the water supply and electric grid along with hiring from low-income and disadvantaged communities to boost the local economy.”