Daniel Mercer
SpaceX, the company founded by Elon Musk and known for its Starlink satellite internet service, has announced a significant 50% discount on internet plans for residents in the Memphis, Tennessee area. This information was shared in a statement released online on Tuesday.
While the company did not provide specific reasons for the discount, it may be a strategic response to local backlash against data centers owned by xAI, a company that SpaceX acquired earlier this year. SpaceX highlighted that it operates data centers in Memphis and the nearby city of Southaven, Mississippi, likely aiming to improve its public image amid community concerns.
In its announcement, SpaceX stated, “Starlink is applying a service discount for our neighbors in the Memphis area. Earlier this year, SpaceX acquired xAI (now known as SpaceXAI), which manages the Colossus data centers in Memphis and Southaven. As SpaceX continues to invest in the Memphis community, we are offering a discount on eligible monthly Starlink service plans.”
The Memphis data center utilizes gas turbines, a fact that local environmental advocates claim contributes to regional pollution. Reports indicate that these methane gas turbines were installed without public notice, appropriate permits, or necessary air pollution controls, as highlighted by the Southern Environmental Law Center and the NAACP.
In April, the NAACP initiated a lawsuit against xAI regarding the Colossus 2 data center in South Memphis, alleging that the tech company has been operating gas turbines illegally and violating the Clean Air Act.
“xAI’s choice to install and operate multiple polluting gas turbines without any permits or public oversight constitutes a blatant violation of the Clean Air Act,” stated Patrick Anderson, a senior attorney with the Southern Environmental Law Center, in a public statement.
To qualify for the discounted Starlink service, customers must check their service address, with an online map indicating coverage for Memphis, Southaven, and Collierville. According to Bloomberg, Starlink pricing varies between $55 and $130 per month, depending on the selected plan.
Earlier this month, SpaceX went public, significantly boosting Elon Musk’s wealth and propelling him into trillionaire status. The stock has experienced fluctuations since its debut but has shown signs of recovery recently. It closed at just over $170 on Tuesday, a drop from a peak of $201 on June 16. Forbes currently estimates Musk’s net worth at $1.1 trillion, down from $1.4 trillion on June 16. His wealth is closely linked to the performance of SpaceX’s stock.
Representatives from xAI did not respond to inquiries sent via email on Tuesday. Gizmodo will update this article if we receive a response.
Ethan Carter
