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SpaceX SVP for Starlink Michael Nicolls shared the news on X, saying, “The unique capabilities of the Colossus datacenters could not be accomplished without the partnership and support from the local Memphis community. Happy to bring affordable and great @SpaceX @Starlink connectivity to our neighbors.” Elon Musk also said in a post, “Half price Starlink for people in the Memphis region,” while sharing a post that talks about the discount. This is great news for users in the area who are already using Starlink or are planning to switch to it, but critics say that this is simply a PR stunt to help give the company a positive image as it faces lawsuits for air and noise pollution.
Earlier this year, @SpaceX acquired @xAI (now SpaceXAI), which operates the Colossus datacenters in Memphis. As SpaceX continues to invest in the area, SpaceX is offering our neighbors in the Memphis area no upfront hardware costs on Residential @Starlink kits for new customers… pic.twitter.com/BfnOHHPLOx June 30, 2026
The Southern Environmental Law Center (SELC) has previously sued the company for the alleged “illegal” generators that it used to run the Colossus site , while another class action was filed last month over the “near-constant noise” and vibrations that surrounding areas experience from the data centers, according to PCMag . "Communities in Memphis and North Mississippi aren’t asking for discounted internet service,” SELC Senior Attorney Amanda Garcia told the publication. “They're asking xAI to shut down its illegal, unpermitted power plant that continues to pump out staggering amounts of harmful (sic) pollution, including smog-forming nitrogen oxides, fine particulate matter, and hazardous chemicals like formaldehyde.”
But even though the EPA itself said that xAI isn’t exempt from securing permits for its gas turbine generators , it seems that the community is on the back foot in this legal battle. This became apparent after the U.S. government asked the court to dismiss the lawsuit, saying in a legal memorandum that shutting down xAI’s generators “threatens American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War’s military operations.”
The Starlink discount for the community surrounding SpaceXAI’s data centers would make it more affordable for users who have no access to reliable wired internet. However, Memphis and Southaven are both urban areas with no shortage of faster and cheaper wired fiber alternatives. AT&T and Xfinity offer 300 Mbps plans that only cost between $40 and $45 per month — about $20 more affordable than the discounted Starlink Max plan.
Elon Musk's SpaceX secures 100% property tax exemption for planned $55 billion Terafab semiconductor factory in Texas
Elon Musk's first-gen orbital data center craft spans wider than a Boeing 747 and runs an interchangeable chip payload
Musk's SpaceX has rented out access to its supercomputer's 220,000 Nvidia GPUs and 300 megawatts of AI compute power to rival Anthropic
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Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/starlink-offers-50-percent-discount-free-hardware-rental-for-residents-surrounding-its-data-centers-move-comes-as-elon-musk-faces-lawsuits-from-residents-complaining-about-noise-and-air-pollution-from-developments#main
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