Lawmakers are raising alarm bells over the rapid expansion of AI data centers, with a top Democrat urging Elon Musk’s SpaceX to open its Memphis facilities to scrutiny. The pushback stems from growing public concerns about the environmental impact, strain on local infrastructure, and the potential economic consequences of these power-hungry installations.
Representative Frank Pallone (D-NJ), the Ranking Member of the House Committee on Energy and Commerce, has formally requested a tour of SpaceX’s xAI data centers and power generation sites around Memphis, Tennessee. In a letter addressed to Musk, Pallone articulated the anxieties of many Americans who feel their communities are being adversely affected by the proliferation of large-scale data operations and the aggressive pursuit of artificial intelligence by Big Tech.
“Americans are concerned about what data centers and Big Tech’s push for more AI means for their communities, jobs, property values, and future,” Pallone stated. He highlighted escalating electricity prices, an overburdened electric grid, and the degradation of air and water quality along with growing noise pollution as significant issues impacting community well-being.
This sentiment is not isolated. Public opposition to data center development is escalating across the United States. Following xAI’s significant buildout in Memphis, and with similar projects underway from industry giants like OpenAI, Meta, Microsoft, and Google, a recent Gallup poll revealed that a substantial seven in 10 Americans oppose the construction of an AI data center in their local area, with nearly half expressing strong opposition.
Pallone has set a deadline of August 11th for SpaceX to provide the requested information and access to its facilities. SpaceX has not yet responded to requests for comment.
The facilities in question, known as Colossus and Colossus 2, are central to SpaceX’s ambitious AI endeavors. These complexes house three data centers equipped with advanced Nvidia processors, laying the groundwork for xAI’s participation in the competitive AI landscape. xAI, which developed Grok’s AI models, chatbot, and image editing tools, was acquired by SpaceX as the company aims to challenge established AI players and pursue the long-term vision of creating orbital data centers.
Pallone pointedly criticized SpaceX and Musk for what he described as a “disregard for the health and well-being of local communities.” He raised serious concerns about the company allegedly utilizing “off-grid gas turbines” to power these facilities, potentially creating “a massive health risk” for nearby residents without adequate permits or pollution controls. This practice has reportedly drawn the attention of regulatory bodies.
Adding to the controversy, the Department of Justice under the Trump administration has filed a motion to intervene in a lawsuit filed by environmental advocates and the NAACP in Mississippi. The lawsuit aims to halt xAI’s use of what are alleged to be illegal, air-polluting turbines. Pallone argued that such governmental intervention sets a dangerous precedent, suggesting that federal protection could shield tech companies from environmental accountability.
“The Trump Administration has essentially claimed that it alone decides whether SpaceXAI and other companies get a free pass to pollute unimpeded,” Pallone wrote, asserting that administrative leniency does not legitimize potentially harmful corporate practices concerning air, water, and land. In parallel efforts, New Jersey Governor Mikie Sherrill recently signed legislation designed to ensure data center operators bear a fair share of electricity costs, preventing the burden from shifting to consumers.
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