Two years ago, Elon Musk turned Memphis into a hub for his AI ventures, racing to build data centers and energy plants at a blistering pace. Now, residents are dealing with the fallout—constant noise and emissions from natural gas turbines that power the facilities. The sites, called Colossus and Colossus II, have become a flashpoint for communities across the U.S. pushing back against the rapid expansion of AI infrastructure.

This week, New York Governor Kathy Hochul paused new AI data center construction for a year, angering President Donald Trump, a Musk ally. New Jersey Governor Mikie Sherrill also signed a law requiring data center operators to pay their fair share for electricity, preventing cost shifts to residents. These moves echo complaints from Memphis, where locals say SpaceXAI, now part of Musk’s SpaceX, never consulted them before breaking ground. Jason Haley, a Southaven, Mississippi resident living near Colossus II, described the noise as “like a form of torture.” A Gallup poll in May found 70% of Americans oppose AI data centers in their neighborhoods.

The backlash has sparked lawsuits and policy changes. In June, Southaven residents filed a class action suit against SpaceX over noise, while the NAACP sued the company for violating the Clean Air Act with unpermitted gas turbines. The Department of Justice intervened, citing national security concerns linked to SpaceXAI’s military tech. Meanwhile, Memphis Mayor Paul Young noted the project paid $25 million in taxes last year, but acknowledged SpaceX hasn’t delivered on promises like a water recycling plant. Residents say their utility bills have risen, though local utility Memphis Light Gas & Water denies the increase is due to the data center. For now, communities like Whitehaven, Tennessee, where Loretta Thornton lives next to Colossus II, feel trapped. “You just have to endure this,” she said. “Who will want to buy my property beside this thing?”

Source: CNBC