Elon Musk, the world’s richest man, has been secretly building a massive data center for his AI startup xAI in Memphis, keeping the details of the project under wraps. The project, known as “the world’s largest supercomputer,” was developed in an empty factory along the Mississippi River and has been named “Colossus.” Musk’s right-hand man, Jared Birchall, has facilitated the project by controlling a mysterious shell company called CTC Property. Government officials in Memphis, including law enforcement agencies, were required to sign non-disclosure agreements with CTC Property in order to tour the facility, raising concerns about the lack of transparency in the deal.
The rapid development of xAI’s supercomputer in Memphis has raised eyebrows among city council members and residents, who were not informed of the project until after it was officially announced in June. The data center’s massive power and water consumption, equivalent to that of 100,000 households and 1 million gallons of water daily, has sparked concerns about strains on local resources. The facility is awaiting approval from the Tennessee Valley Authority for a total capacity of 150 megawatts, prompting the construction of a new substation. xAI’s use of non-disclosure agreements has been criticized by local conservation groups, who argue that the public has a right to know about such significant projects that impact the community.
The use of non-disclosure agreements by Musk’s companies to keep government officials silent about projects in their towns is not new. Similar tactics have been used in Nevada, Texas, and other states where Musk’s ventures have operated. In Memphis, concerns have been raised about the lack of transparency surrounding xAI’s facility, particularly regarding its gas-powered generators and potential emissions. Environmental justice groups have called for greater community involvement in decision-making processes, especially given the facility’s proximity to historically Black neighborhoods. The secrecy surrounding xAI’s operations has left residents eager for more information, with some even facing encounters with armed guards while trying to capture footage of the facility.
The controversy surrounding xAI’s data center in Memphis extends beyond just the lack of transparency in the project’s development. The city’s public utility, Memphis Light, Gas and Water, has been criticized for signing a non-disclosure agreement with CTC Property and for its handling of information related to the project. Community groups and environmental organizations have raised concerns about the potential impact of xAI’s operations on air quality and public health, prompting investigations by local health agencies and the Environmental Protection Agency. As the debate continues over the secrecy and implications of xAI’s presence in Memphis, residents and officials alike are left seeking answers and accountability from the billionaire tech mogul and his AI startup.
