MEMPHIS, Tenn. — xAI recently received a permit by the Shelby County Health Department that allows use of their natural gas turbines, and there has been a lot of outcry from community leaders in South Memphis who say the turbines pollute.
But Tuesday, the Greater Memphis Chamber hosted an event to explain why the turbines were approved, and the opportunity they believe is coming to the city.
“What this company represents and the magnetism of the indirect jobs that will come our way, it represents a sea change in us, changing our narrative as a city,” said Bobby White, the Memphis Chamber’s Public Policy Officer.
White also noted that Elon Musk’s company has received no taxpayer funding, has been working with the Tennessee Valley Authority and MLGW, and will be investing $80 million to build Memphis’ first wastewater recycle facility.
And while xAI says their gas turbines will not be heavily relied on, xAI’s environmental consultant Shannon Lynn says the Shelby County Health Department will be making routine checkups and emissions tests for the company’s turbines.
“They will perform routine inspections,” Lynn said. “There’s record-keeping and recording required in the permit, there’s also periodic performance testing to verify that just because there’s a claim that is made of two parts per million of NOX, they actually have to conduct testing to demonstrate that the emissions are two parts per million of NOX.”
State Rep. Justin J. Pearson spoke just days ago about the company’s lack of transparency.
“So our fight is not over and the need for more transparency and more information in what they are seeking to do matters,” Pearson said.
Bobby White and the chamber doubled down on their optimism for xAI.
“As time goes on, I think we will see more and more of the benefit in what is happening in this moment, in this historic moment for our city,” White said, calling xAI the biggest thing in the history of the state of Tennessee.
Also Tuesday, Mayor Paul Young pitched City Council members Tuesday on what he called a first-of-its-kind program that will use tax money generated by “artificial intelligence property” to support surrounding neighborhoods.
The proposed ordinance would designate 25% of the property tax revenues generated by two xAI sites — one in Boxtown and one in Whitehaven — to be used for infrastructure improvements within five miles of those sites.
Councilman Edmund Ford Sr. said it was important for the city to make a move on the opportunity presented to Memphis by data centers.
“This may be the best thing that ever happened to Memphis. We may be able to survive where others couldn’t survive. What we are trying to do, everybody wants it,” Ford Sr. said.