In summer 2023, Elon Musk transformed a historic area of South Memphis, Tennessee—a community established by emancipated individuals in 1863—into “Colossus,” purportedly Earth’s most powerful supercomputer.

The project converted a former manufacturing facility into a 550-acre computing centre to train Grok, his AI company’s “anti-woke” chatbot. While the predominantly Black neighbourhood struggled with industrial emissions, Musk’s venture promised jobs and tax revenues.

However, these economic promises carried environmental costs. xAI installed three dozen gas-powered turbines, bypassing environmental assessments and releasing nitrogen oxides in an area already failing federal air quality standards.

Memphis faces worse smog than 86% of major US metropolitan areas, and the facility would become the city’s primary smog source. The neighbourhood already faces four times the national average cancer risk from air pollution.

On Tuesday, after months of grassroots activism by Memphis Community Against Pollution, the NAACP filed notice to sue xAI for Clean Air Act violations.

The ZIP code houses 19 active polluting facilities, including an oil refinery. LaTricea Adams of Young, Gifted & Green highlighted how residing in ZIP code 38109 has devastated Black residents’ health, calling it “a death sentence for Black Memphians” and “a clear act of genocide.”

Life expectancy in the area, known locally as Boxtown due to early Black residents building boxcar-like houses, falls eight years below the US average. CDC data shows 45% of residents report “poor or fair” health—triple the national rate.

“We shall remain steadfast in South Memphis,” she stated, addressing the community’s resolve against environmental challenges.

This dispute highlights the clash between Silicon Valley’s AI ambitions and nationwide environmental justice efforts.

NAACP President Derrick Johnson condemned billion-dollar corporations establishing polluting operations in Black neighbourhoods without proper permits.

xAI maintained its compliance in a statement to NBC News: “We take our environmental responsibilities seriously. The temporary generators operate within regulations.”

While the Southern Environmental Law Center prepares legal action, local authorities claim permits aren’t required in the first year.

The company’s Memphis investment includes £30 million in annual property taxes, £35 million for a power substation, and £80 million for water recycling.

Despite these investments, residents worry these facilities contradict clean energy goals. Advocates note that rising data centre power demands extend fossil fuel dependence, with 17 generators facing delayed closure and 20 new projects planned nationwide.

“Elon Musk’s xAI joins Memphis’s polluters,” said KeShaun Pearson of Memphis Community Against Pollution. His brother, Representative Justin J. Pearson, likened the struggle to David versus Goliath: “We’re like David. But that’s fine—we know how that story ends.”