Building Together: City of Memphis Weekly Newsletter

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Last week, at the Greater Memphis Chamber’s annual Chairman’s luncheon, the team announced that xAI plans to expand Colossus (already the world’s largest supercomputer) from 200,000 graphic processing units (GPUs) to house at least one million GPUs. The announcement represents an investment in Memphis that would be one of our city’s largest - the equivalent of 10 Blue Oval Cities. 

Now, I understand that xAI’s supercomputer is a concept that isn’t quite comfortable for some Memphians. I know there are still questions about the current and future energy usage, including what entity will provide it - TVA or an independent provider. And, while I understand the apprehension – “supercomputer” still feels a bit sci-fi to many of us – and believe that we clearly have more to discover about how the growth will impact our city, I wanted to share my perspective on the Memphis operations following their big news. 

A few weeks ago, I had the opportunity to tour the xAI facility with some of our senior leadership team, and we all left inspired by what the xAI team is accomplishing and encouraged about what the project means to Memphis and the catalyzing power it could have for our community. 

Innovation. I say it often, but in Memphis, innovation is in our DNA, from the creation of the modern-day hotel or grocery store to overnight delivery or life-changing medical research. Memphis has long been an incubator for expansive thought - a place for change-makers to practice their crafts. Earlier this year, when I was asked to create messaging for Memphis International Airport, in what now feels like a moment of foreshadowing, I used the words, ‘For those looking to change the world, welcome home.’ After touring the xAI facility, it is clear that they have both recruited and trained an entire team of world-changers. And this is one of the points of the xAI story that I think gets overlooked. Part of what was so inspiring to me was the upskilling of Memphis talent. The world-changing process is being accomplished with Memphis' talent. The other part of the story that gets overlooked is the potentially massive increase in property tax that this development, and the future developments it will attract, will bring to the city of Memphis.

Vision. As the Mayor of Memphis, I am tasked with being the primary vision-caster for our city. My vision for Memphis is one of resilience and growth. My vision is one of increasing wealth and prosperity. When Memphis was chosen as the home of xAI and the world’s largest supercomputer, we saw some of that vision becoming reality. And with this latest announcement, we can see that xAI is leaning into our city. They obviously have enjoyed the welcome, the work ethic, and the results so far. 

I believe timing is everything, and a little luck never hurt anyone, but the reality is that Memphis worked hard to land that initial project, and we haven’t stopped. The chamber, MLGW, the city, and the county had a vision of what it could be, and we all did our part to secure it. I am proud of those efforts to prove what is possible in Memphis. And I am equally excited by the news of xAI's expansion. Their continued investment represents their faith in our vision and our community. It also provides an ongoing significant opportunity for Memphis and our residents.

Community Impact. During the tour, Senior Manager Brent Mayo shared a little about the spectacular progress they had made here, including standing up the initial internal infrastructure in 122 days, more than 2.5 years sooner than others said it could be done. Mayo shared that they accomplished this first-of-its-kind goal using 80% Memphis talent. That is huge. Those are real jobs. That work experience is real. Utilizing a team comprised of primarily Memphians, they accomplished something groundbreaking - something world-changing. And they are committed to doing more. Let me say that one more time. Colossus was built using 80% Memphis talent - that means the xAI team trained Memphians to be the best in the world at building tech facilities. Full stop. 

While accomplishing this nearly impossible feat, Mayo has also begun integrating into the fabric of Memphis, meeting with various stakeholders, including school officials, small businesses, and city representatives like our group. I believe this demonstrates the company's interest in understanding and contributing to the needs of our community. Mayo's emphasis on building and preserving the community reflects the company’s dedication to being a responsible corporate citizen. 

The facility is first-rate. A local minority vendor operates the food services, which are free for all workers. They also provide a fitness facility and compensate workers for using it. They are offering $25K signing bonuses for new employees choosing to relocate to Shelby County and $10K for those relocating to Northern Mississippi or West Arkansas. 

Environmental Stewardship. Before we agreed to finalize the deal to welcome the company to our city, I made a few asks of the team. All of those requests were related to our water and energy resources. And each was met with a positive response. Still, these issues often come up when I mention xAI. There seems to be a lingering belief that their facility and practices may damage or denigrate our environmental position or grid resiliency. In reality, I believe they present a positive model for responsible industrial development, and their commitment to environmental sustainability and stewardship will have a net positive impact on our community. 

I can confirm that xAI has committed to building the world’s largest ceramic membrane bioreactor wastewater recycling plant. They call it “Colossus Wastewater Recycling Plant.” The facility, when complete, will treat and process 13 million gallons of wastewater per day (approximately 4.7 Billion gallons per year) for reuse in cooling their facility. The plant’s operations will also allow Nucor, TVA, and possibly others to move away from using aquifer water as a coolant in their facilities. Until then, the company has installed an internal recycled water system for its current use. This is a very green solution designed to protect one of our most precious commodities. 

Additionally, they are building a battery backup system that will allow them to completely remove the supercomputer from the grid in times of high need, preventing their operations from putting residents, businesses, and our community at risk. 

Future focused. What we know is that xAI's presence in Memphis will bring revenue to our city coffers. It will create job opportunities and attract talent. It will encourage others to join them. It will contribute to the development of our city's green infrastructure, helping to protect our water source. As the company continues to invest in innovative projects and sustainable initiatives, it is poised to become a key contributor to Memphis' growth and prosperity.

But I think the most important asset xAI may bring to our community is a reminder that Memphis is worthy of world-changing, wealth-creating, and pride-inspiring change. 

Good News!

Do you have good news to share? We would love to share it! Send us a note at goodnews@memphistn.gov

Weekly Crime Trend

The report below provides our weekly update on Part 1 Crimes. It updates daily and shows a continuous rolling 7-day total compared to the prior 7-day total. The charts on the right show the calendar week trend, comparing 2023 to 2024.

(We maintain two crime dashboards, the Weekly Crime Trend report can be found here, and the Crime Analytics dashboard can be accessed here.)

Our Strike Team worked in the following zip codes this week: 38106, 38109, 38112, 38114, 38117, 38118

Community Engagement:

Memphis Academy of Civic Engagement. The MACE program was created to give citizens of Memphis 18 and over an in-depth insight on various aspects of Memphis, divisions of city government, and community involvement. Sign up for the free 7-week program to hear from government officials and community leaders to increase your civic understanding of our city. Applications are due by 5:00pm on January 10. See more and apply here. 

Memphis Fire Free Smoke Detectors. Protect what matters most! Working smoke detectors save lives during fire emergencies. Don’t wait—request your FREE smoke detector today from the Memphis Fire Department. See full details here. 

Social and Community Shout-outs:

Starry Nights. Glow up your holidays at Shelby Farms Park's largest event! Starry Nights brings the spirit of the season to life with dazzling displays featuring millions of lights. See full details and get tickets here.

Memphis Tigers Zoo Lights Night. Come celebrate the holiday season and send off the Memphis Tigers Football Team ahead of the Frisco Bowl game. Zoo lights is fun for the entire family and will be open until January 4, 2025. See full details and share here. 

Memphis Public Libraries. Here comes Santa Claus right down Poplar Avenue! Join Memphis Public Libraries this Saturday, December 14 for holiday crafts, popcorn, hot cocoa, and of course, Santa from 11am to 2pm at Benjamin L. Hook Library. See more and share here.

Memphis Animal Services. Join MAS this Saturday, December 14 for an extra Holiday special adoption event! With extended hours from 10am to 5pm, they’re making it easier than ever for you to find your purr-fect match. See more and share here. 

Weekly round-up

in partnership and progress,

Paul A. Young