House Energy Committee Democrat Demands Elon Musk Tour of xAI Data Centers in Memphis

The ranking Democrat on the House Committee on Energy and Commerce is demanding that SpaceX CEO Elon Musk provide a tour of the company's xAI data centers and power plants in and around Memphis, Tennessee.

In a letter to Musk on Wednesday, Rep. Frank Pallone (D-NJ) wrote:

"Americans are concerned about what data centers and Big Tech's push for more AI means for their communities, jobs, property values, and future. Electricity prices are skyrocketing, the electric grid is strained, our clean air and water are being polluted, and noise is wearing on communities' health and patience."

Pallone accused SpaceXAI of creating "a massive health risk" in the region by using natural gas-burning turbines for power without pollution controls or permits.

Key Developments

• Letter deadline: Pallone has demanded information about Musk's facilities by August 11.
• SpaceX response: The company did not respond to a request for comment.
• Public sentiment: A Gallup survey published in May found that seven in 10 Americans oppose the construction of an AI data center in their local area, with 48% strongly opposed.

The Facilities

SpaceXAI's artificial intelligence facilities, known as Colossus and Colossus 2, include three data centers packed with cutting-edge Nvidia processors. They were built by xAI before SpaceX acquired Musk's startup, which develops Grok's AI models, chatbot, and image editing tools.

The facilities are central to SpaceX's AI ambitions as the company competes with OpenAI and Anthropic, and aims to eventually build orbital data centers.

Environmental and Legal Concerns

Pallone excoriated SpaceX and Musk for a "disregard for the health and well-being of local communities." He stated that the company has created "a massive health risk" by "trucking in off-grid gas turbines" to power the facilities without proper permits and pollution controls.

The Trump Administration's Department of Justice has filed a motion to intervene, effectively helping xAI fight off a lawsuit filed by environmental advocates and the NAACP in Mississippi to stop the company's use of allegedly illegal, air-polluting turbines.

Pallone wrote:

"The Trump Administration has essentially claimed that it alone decides whether SpaceXAI and other companies get a free pass to pollute unimpeded. But just because the Trump Administration will bend over backward to give tech companies free rein over community air, water, and land does not make your actions legal."

Broader Context

Public opposition to data centers is rising across the U.S. following xAI's buildout in Memphis, with similar projects underway from OpenAI, Meta, Microsoft, and Google.

New Jersey Gov. Mikie Sherrill, a Democrat, enacted legislation earlier this month to ensure data center operators pay a fair share for electricity, rather than shifting costs to residents and businesses.

Read the full letter here.

Watch now: How Elon Musk's AI empire in Memphis became a cautionary tale (29:01)

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