Memphis residents weigh in on the impact of SpaceXAI and data center construction

News Clip1:56ABC24 Memphis·Memphis, Shelby County, TN·9/17/2026

Residents in Memphis are expressing concerns about the noise, traffic, and dust from XAI's data center construction in White Haven, despite the project bringing billions in investment and millions in tax revenue. City Councilman JB Smiley is advocating for a closer look at how these funds are reinvested to benefit impacted communities, particularly through the existing community benefits ordinance.

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Gov: City of Memphis, Councilman JB Smiley

XAI's data center project is bringing billions of dollars in investment and millions in tax revenue to the city of Memphis. However, residents living near the construction site in White Haven are questioning how this money is being reinvested into their neighborhoods to mitigate negative impacts.

David Glover, a local resident, described the challenges of dealing with increased noise, traffic from dump trucks and buses, and dust and dirt due to the ongoing construction. Other residents echoed these concerns, emphasizing the strain on local infrastructure like two-lane streets now heavily trafficked and the need for new stoplights.

City Councilman JB Smiley weighed in on the issue, stressing the importance of tax dollars but cautioning against accepting investments "at the expense of people." He called for a thorough evaluation to ensure the project serves the best interests of Memphis residents. Smiley noted that while tax dollars generally go into the city's general fund, a community benefits ordinance allocates 25% of city property tax revenue from AI properties for public purposes in areas surrounding data centers. Residents are advocating for these funds to be used for immediate infrastructure improvements, such as road upgrades and traffic control.