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Elon Musk’s artificial intelligence company xAI is promising to repair and renovate four Memphis-Shelby County schools located near its two new data centers in Southwest Memphis.
That agreement, approved by the MSCS school board on Tuesday, will offer some relief to the district’s growing deferred facility maintenance needs. But it also pulls the district into a controversial project that’s sparked community backlash.
The four schools included in xAI’s plan – John P. Freeman Optional, Fairley High, Mitchell High, and Westwood High – have some of the most dire building repair needs in the district, according to The Daily Memphian, estimated to cost $61 million over the next decade. The AI company is committing to plumbing and HVAC upgrades, as well as construction of new technology classrooms.
But some board members expressed skepticism around the resolution with xAI, citing protests from residents living near the company’s data centers over air pollution and water usage concerns. The MSCS board voted 7-2 to enter a memorandum of understanding with xAI for the upcoming school year.
Vice Chair Stephanie Love opposed the measure, as did Keith Williams on behalf of his Whitehaven constituents.
“There is a mountain of resistance to this project,” Williams said. “If the community doesn’t want it, and the school system says, ‘We’ll support you doing these things to our school,’ then the school district is doing a disservice to the citizens that they serve in that community.”
Board member Amber Huett-Garcia, who sponsored the resolution, said the AI company is going to exist in Memphis whether the board “approves of their existence or not.”
“And if they want to invest in our children and our families, and their future workforce and their future leadership, I will not sleep tonight if I say no to that,” she said.
In a July 15 letter to the district, xAI Senior Manager Brent Mayo said the company will fully fund, in each school building, the repair or installation of:
- Plumbing, lighting, and HVAC systems
- Athletic facilities, including an outdoor track and indoor basketball court
- Chemistry and technology labs
- Outdoor landscaping
The company received approval for a donation exceeding $15,000, but it’s unclear how much the upgrades will cost in total. In his letter, Mayo said xAI will “assume all financial responsibility” associated with additional repairs.
Board member Natalie McKinney stressed that the agreement between MSCS and xAI needs to be “not a one-hit-wonder thing,” but “the beginning of a partnership.”
Bobby White, who represented xAI at Tuesday’s board meeting on behalf of the Greater Memphis Chamber, said the company has already shown its commitment to neighbors by building an $80 million wastewater recycle facility to address usage concerns.
And he said this project helps set up a pipeline for MSCS students who could one day work for xAI.
White recognized that the company has struggled with a “negative perception” from community members since the beginning. He said that’s why leaders waited until after they received permit approval from the Shelby County Health Department to announce the school projects.
“There is nothing the company is asking for from the community at this point,” White said. “It’s only looking to make an investment with its neighbors.”
MSCS is facing at least $1 billion in deferred maintenance costs across its school buildings. The board voted in June to establish a committee of appointed education and business leaders to help make decisions about school closures and upgrades.
Interim Superintendent Roderick Richmond originally said he wanted a report from that committee by Sept. 1. But the group will meet for the first time on Aug. 13, board member Sable Otey said Tuesday. And it still hasn’t filled designated student and teacher seats.
Bri Hatch covers Memphis-Shelby County Schools for Chalkbeat Tennessee. Reach Bri at bhatch@chalkbeat.org.
