News Summary
A new artificial intelligence data center is coming to Memphis, backed by a $500 million investment from 5C Group. Set to open this summer, the facility aims to create over 250 jobs. However, local activists have raised concerns about environmental impacts, especially regarding air quality and water usage. The data center will host a significant number of GPUs for advanced AI applications, but community engagement remains a contentious issue as stakeholders push for transparency from xAI.
Memphis is set to welcome a new artificial intelligence (AI) data center, thanks to the 5C Group, which is planning to develop the facility at 4300 Getwell Road, previously the Fred’s headquarters. The $500 million investment is anticipated to create over 250 direct and indirect jobs for the local economy and is expected to commence operations this summer, further solidifying Memphis as a significant player in the tech industry.
The data center, which spans one million square feet across three land parcels purchased for $80 million, will host up to 350,000 graphics processing units (GPUs). There are ambitions to expand the setup to one million GPUs, effectively supporting the infrastructure needed for advanced AI applications. This facility is viewed as a major component of the development of the AI model, Grok. The local utility company, Memphis Light, Gas and Water (MLGW), projects that the data center will consume approximately 150 megawatts of power at full capacity, with potential future expansions driving the demand up to 260 megawatts.
However, the decision to establish the data center has not been without controversy. Concerns have been raised regarding environmental impacts, particularly related to air quality and water usage. The xAI company, associated with Elon Musk, has been criticized for reportedly operating gas turbines without the necessary permits, raising alarms among local activists and residents. The community is particularly sensitive to these issues, as the cancer rate in the area is known to be four times higher than the national average, posing alarming health implications.
The data center’s proximity to historically Black and low-income neighborhoods exacerbates concerns regarding industrial pollution. Activists are demanding greater transparency and community engagement from xAI regarding its operational practices and potential hazards. Local residents have expressed dissatisfaction with the level of consultation prior to the establishment of the project.
MLGW has acknowledged the need for improvements to ensure that the increased power demand from the data center does not compromise service reliability for existing customers. In an effort to address environmental concerns, xAI has committed to constructing a ceramic membrane bioreactor to manage wastewater cooling.
The 5C Group’s investment marks a significant development in the commercial real estate landscape of Memphis, signaling the city’s growing position in the technological sector. The choice of location for the facility is also indicative of broader trends where tech companies are gravitating towards regions with lower operational costs.
While the anticipated economic benefits of the data center are clear, with a focus on job creation in the area, there are lingering apprehensions regarding the sustainability of these jobs and corporate commitments to the local community. Previous endeavors by corporations in Memphis have not always resulted in lasting, meaningful employment opportunities, leading to skepticism among residents about the potential long-term advantages of the project.
As the summer opening approaches, local stakeholders continue to advocate for a clear dialogue between the company and the community to address lingering concerns and work toward a mutually beneficial outcome. The establishment of the new AI data center not only has the potential to transform Memphis’s economic landscape but also poses significant challenges that will require ongoing attention and engagement from both the business and local communities.
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Additional Resources
- The Daily Memphian
- Futurism
- WREG
- Data Center Dynamics
- Time
- Wikipedia: Memphis
- Google Search: Elon Musk Memphis data center
- Google Scholar: Memphis data center environmental impact
- Encyclopedia Britannica: Memphis, Tennessee
- Google News: Memphis data center
