Members of the Shelby County Commission are breathing easier following an air quality assessment delivered by the health department on Wednesday, Sept. 23.
Along with a report of a decline in air pollutants, commissioners also learned the controversial SpaceXAI data center is conspicuously absent from a list of the county’s top five industrial polluters. The update was delivered during a discussion on adjusting fees and rates on area businesses that affect air quality.
“I know some of you are sitting here and you are wondering, ‘where does SpaceXAI fit in this?’ It’s 28th,” deadpanned SCHD deputy health director Casey Smith Alexander.
The news could also simplify the Memphis City Council’s ongoing effort to craft regulations for data centers. Of particular concern is the SpaceXAI’s Colossus facility.
It certainly seemed to catch some on the commission off guard. They were expecting the data center to be among the leaders. That distinction belongs to Nucor Steel, Valero, Drexel, TVA’s Allen Combine Cycle Plant and Mitsubishi Chemical of America. One member of the city council on hand was also taken aback.
“I am stunned by what the deputy just shared with us,” said Yolanda Cooper-Sutton.
Worries have flourished since the tech facility opened in 2024. The data center currently uses 15 gas generators to power 200,000 Nvidia graphic processing units. The hardware is training the AI chatbot Grok. Temporary generators are also in use at the Southaven SpaceXAI Colossus II facility too.
Ground level ozone emissions near the locations are a major concern. Long term exposure risks permanent respiratory system damage and other illnesses. Still, the apprehension appears to have missed the mark.
“I am not sure exactly where all of this misinformation is coming from,” said Cooper-Sutton.
Last week, the councilwoman requested an in-person update from the health department, after a printed air quality report left lingering questions. In that report, the health department stated the City of Memphis has experienced an increase in air quality alerts since 2024. The rise was attributed to a combination of weather and carbon emissions.
“We must really think about what this ask is with these data centers in the city now aggressively growing. They’re not going anywhere. So we need to make sure we have the proper guardrails,” said Cooper-Sutton.
Through a federally-mandated program, the health department monitors five major pollutants. Along with ozone particulates, the list includes CO2, lead, nitrogen dioxide and sulfur dioxide. Furthermore, 188 toxic pollutants specified by the Clean Air Act are also monitored.
However, the program is currently $90,000 short of its overall $900,000 budget. Most of the money is used to pay staff members. The revenue is generated through rates and fees paid by local industries. Small businesses, such as dry cleaners and gas stations, are exempt. Penalties for violations add to the revenue.
Ironically, the cause of the funding shortfall is less pollution.
“We are polluting less in our community, which is great news,” said Alexander. “But, unfortunately, the program relies on being paid via the emissions that are being polluted. Therefore, by emissions going down, so are our revenues.”
Noise pollution is another matter. Residents near the SpaceXAI data center report an around the clock din. To cut the racket, joint city and county development codes will need to be addressed. That could come at a later date.
“It is an opportunity and time for us to talk about things at the root cause of how do we really change the problem,” noted commissioner Miska Clay Bibbs. “To talk about changing county-city ordinance codes too, to address issues around large scale industries.”
The ordinance amendment passed 12-0 on its first vote. Three votes are required for approval.
