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STATE REPORT · TN

Tennessee data centers

A source-linked community equity profile. Current through September 11, 2026.

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HOST ZIP · 38109

Colossus 1 and related xAI buildout

Southwest Memphis · xAI / SpaceXAI · Operating and expanding

Open ZIP report

Community profile

Classification: Lower-income and overwhelmingly Black

Geography: 38109 ZCTA; five-mile study where cited

Income: Household income is well below the national level; use the linked ACS profile for the latest estimate and margin of error.

Race: A Reuters five-mile analysis found the Tennessee-side population around the site was about 94% Black.

Documented bargain

Benefits: Reported property-tax revenue, construction jobs, a local-revenue ordinance, and company-funded utility and water-reuse infrastructure.

Burdens: Air-permit disputes, turbine emissions, noise, water transparency and unequal cumulative exposure dominate community concerns.

Power and government

Utilities: MLGW reports 150 MW of grid service for Colossus 1; Shelby County permits up to 15 gas turbines through January 2027.

Public action: Memphis directs 25% of city data-center property-tax revenue to neighborhoods within five miles, including 38109 and 38116.

Equity finding

This is the clearest frontline case in the sample: a large AI campus with on-site gas generation sits beside a predominantly Black community already carrying significant cumulative pollution burdens.