NEWTech

SpaceXAI Faces Backlash Over Data Centers Amid Growing Opposition

Published on 7/17/2026

SpaceXAI Faces Backlash Over Data Centers Amid Growing Opposition

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Elon Musk's SpaceXAI is facing public opposition in Greater Memphis due to noise and emissions from its data centers, Colossus and Colossus II. New York Governor Kathy Hochul has enacted a one-year moratorium on AI data center construction, while New Jersey Governor Mikie Sherrill has proposed legislation for data center operators to pay fair electricity costs. A Gallup poll indicates that 70% of Americans oppose data centers for AI in their local areas. This backlash is significant as it highlights growing concern over the impact of AI infrastructure on communities, affecting both public sentiment and potential operations for companies like SpaceX (SPACE).

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