Tag Archive for: xai

Earlier this week we posted about the responses we received from Shelby County’s state reps and senators about where they stand on Elon Musk’s xAI supercomputer project. Of the 17 we reached out to, we only got responses from 5. You can read those responses here. 8 Dems and 4 Republicans did not respond.

4 Dems told us they oppose the project: Rep. Pearson, Rep. Hardaway, Rep. Salinas, Sen. Kyle

2 Republicans support it that we know of: Rep. Gillespie, and Sen. Brent Taylor

Only Republican responded to us: Senator Taylor.

To his credit, Taylor is also always willing to talk to us up at the capitol also. Let’s just say he is not camera shy.

Senator Taylor has been a proponent of the xAI project since the beginning. His responses to us were lengthy (so much so that we joked it felt like he had asked Grok to write them for him), and we asked him some follow-up questions also, so we decided they warranted a post of their own.

Our full exchange is below.

The main thing we wanted to know is what evidence he has to support the claims that xAI is creating jobs specifically for Memphians. Supporters of the project (Taylor, the chamber, Mayor Young) continue to talk about the job creation, but have provided no specifics about which MEMPHIANS are benefitting. Until we see some evidence of that, it feels fair to keep poking and prodding that claim.

Here’s the full exchange:

US: Senator Taylor, Do you support the xAI project?

SENATOR TAYLOR: “Yes. I have been involved in some key aspects of the project both at the site, and off site since the announcement of xAI. I have toured the facility multiple times most recently last week. They are a great asset for Memphis. They are employing approximately 300 xAI employees and paying Silicon Valley wages. They are hiring from economically distressed areas of Memphis and are changing lives of people who are able to move from SNAP benefits to six-figure wages. Additionally, they are employing 1,100 independent contractors in perpetuity to continue to build out and maintain the super computer. These independent contractors are largely local contractors. As I have spoken to those contractors they have been able to grow their businesses two and three times due to work at the xAI facility. Lastly, this is the largest investment in Tennessee history. It is, so far, two and a half times the Blue Oval City investment. xAI is at roughly $13B and counting. All with no local or state incentives. They are doing this just like I did when I was in business, they are using their own money to invest in Memphis.”

There’s a lot to unpack there, but the main thing we wanted to focus on was the claim that the job creation they keep bragging about is actually helping people in Memphis, and not just people they are bringing in from outside Memphis – or even the country, which we know Elon Musk loves to do through the H1B visa program.

So, we followed up.

US: Saying people are going from food stamps to six figures is a lofty claim. Do you have one person we could talk to that is an example of that?

SENATOR TAYLOR: “I have no authority to provide an employee for you to talk with. I am only sharing with you what I have seen with my own eyes and ears when I toured the facility and spoke to employees myself. The Memphis Chamber can verify my claims. The Chamber might consider asking xAI if they would make an employee available for an interview, but that would be entirely up to them and xAI.”

Needless to say, that reply leaves us unconvinced. We would ask Memphis Chamber Ted Townsend to verify as he suggests, but Townsend has blocked us, so that seems unlikely.

We would however encourage local Memphis folks to pursue this.

US: Is there a way to verify that these jobs you’re talking about are actually going to Memphians? Feels like evidence of the employees and independent contractors you’re referring to would be helpful. Can you send whatever you have been shown that backs that up? 

SENATOR TAYLOR: “Again, these are based on conversations I have had with independent contractors multiple times and employees when I have toured the site. There are some really technical aspects of the construction that require them to bring in outside contractors, but they utilize local contractors as much as possible. Moreover, they will pay a $10,000 bonus to employees who live in Memphis. On my last visit, I spoke to the catering vendor. xAI provides free meals to the employees and independent contractors. It is a minority-owned business and she told me how the xAI contract has changed their lives by allowing them to grow their business exponentially. Since there is no government incentive going to the xAI, they are no more required to make such information available to the public than Brentwood Funeral Services, LLC when I owned it, or what expenses Tennessee Holler may have. xAI, Brentwood Funeral Services, and xAI are, or were in the case of my funeral homes, private businesses.”

So again: no evidence to support these claims of job creation going specifically to Memphians. Forgive us if we don’t just take Elon Musk at his word! (If anyone out there works at xAI or knows someone who does, please contact us. We will gladly preserve your anonymity)

Job creation aside, much of the community pushback has focused on the health concerns. xAI has been running gas turbines without permits, and appears to be dishonest about how many… as they plan to purchase more land, which will require even more energy.

As Rep. Pearson and his brother Keshaun say regularly, matter how many jobs they may or may not be creating, none of it is worth it if they are poisoning an area that is already struggling to survive with poor health quality. This Perfect Union piece says it better than we ever could. We highly recommend taking the 15 minutes to watch it.

So we asked Senator Taylor about that as well.

US: Do you share the concerns some in the community have expressed about the environmental issues?

SENATOR TAYLOR: “I certainly understand the concerns of the community relative to the environmental issues. However, the environmental concerns predate xAI’s arrival in Memphis and the efforts to address them thus far seem to be misguided. xAI has worked to overcome every environmental concern raised. First, it was the use of the aquifer. They announced they would not use the aquifer to cool the computers. It was suggested they use water from the nearby Mississippi River. They chose not to do that because it would disrupt the ecosystem of the river. They eventually decided to build a gray water facility to turn waste water into water to cool the computers and for the use of nearby industries. They currently use water that has been trucked in and is being used on a closed loop system to cool the computers and no water is coming from the aquifer. MLGW had plans to build the gray water facility but it would take years, so xAI is building the facility for MLGW. Then it was energy use. Data centers use a lot of power and it is a wildly fluctuating energy demand that can damage the electrical grid. So, they brought in battery packs to absorb the energy fluctuations and protect the grid from damage. Then, it was their agreement to come off the grid in peak demand periods. Most industrial customers agree to lower their usage during these peaks by 20% to 30%. xAI agreed to come off the grid at 100% if requested by the utility. Moreover, they just completed a new electrical substation and are in construction on a second substation now which will be given to MLGW after construction. xAI is also purchasing a decommissioned energy plant in nearby Mississippi to generate a portion of their own energy which they will agree to sell back to MLGW during peak demand times at the same price they purchase energy for.”

Taylor paints a pretty picture about xAI being good neighbors here, but we feel the need to jump in here and point out TVA and MLGW have been accused of doing the bidding of xAI, and many believe Trump’s changes to the TVA board have to do with kneecapping TVA’s ability to raise prices on xAI.

SENATOR TAYLOR: “To hear the critics of the facility you would think they plopped the xAI facility in the middle of a neighborhood. It is in the Frank Pidgeon Industrial Park which consists of 3,700 acres of industrial facilities that opened in 1967. After the industrial park and the nearby President’s Island Industrial Park opened, homebuilders built housing nearby so workers could live close to their jobs. In 2025 we now understand environmental concerns as it relates to nearby residential areas. The way I would address the concerns is not to attempt to close xAI or browbeat them to leave Memphis, but I would engage with them and local government to enter into conversations about potential buyout of nearby homes similar to what was done near the Memphis International Airport years ago when I was on the Memphis City Council. This would seem to be a much more constructive way to address the environmental concerns of the neighbors.”

While Taylor is correct that the facility is in the Industrial Park, it is still surrounded by communities that have reported smelling what they are putting out. Additionally, the new bigger facility they have planned is not far from a school. The bottom line is none of this excuses the way this has been handled, which was to announce this as a done deal without community input. Again, the Perfect Union piece sums this all up very well.

US: Do you believe the Shelby County Health Department should deny their gas turbine permits?

SENATOR TAYLOR: “I don’t know enough about their application to give an opinion except to say that in general industrial areas seem to be an appropriate place for this type of power generation. However, they are allowed to operate the turbines for 364 days without a permit. xAI is using turbines that significantly reduce emissions into the air. I don’t know if the turbines will be a permanent fixture at the xAI facility or if this is merely a temporary measure while other power generating methods are built out.”

US: Any other on the record so comments you’d be willing to share?

SENATOR TAYLOR: “If you want to know how Taylor is pissing you off, foller the holler!”

He says this every time. Again, not every senator or rep is willing to talk to us. Taylor will, so we appreciate it.

Here’s the list of who did and didn’t respond to our questions… we will be updating as new responses come in.