Elon Musk’s SpaceX, which owns Starlink satellite internet service, is offering 50% off internet plans around Memphis, Tennessee, according to a statement the company posted online Tuesday.
The company didn’t specifically explain why it’s offering the discount, but it might have something to do with community anger over data centers owned by xAI, which SpaceX purchased earlier this year. The company did note that it owns data centers in Memphis and nearby Southhaven, Mississippi, likely part of the PR push to associate something positive with the company that’s getting so much pushback in the area.
“Starlink is applying a service discount for our neighbors in the Memphis area,” the company said in its announcement. “Earlier this year, SpaceX acquired xAI (now SpaceXAI), which operates the Colossus data centers in Memphis and Southaven. As SpaceX continues to invest in the Memphis area, we’re applying a discount to eligible monthly Starlink service plans.”
The data center in Memphis operates using gas turbines, which local environmental activists warn is contributing to pollution in the area. The methane gas turbines have reportedly been installed without public notice, the proper permits, or the necessary air pollution controls, according to the Southern Environmental Law Center and the NAACP.
The NAACP sued xAI in April over the Colossus 2 data center in South Memphis, which claims the tech company has been illegally operating the gas turbines and is in violation of the Clean Air Act.
“xAI’s decision to install and operate dozens of polluting gas turbines without any permits or public oversight is a clear violation of the Clean Air Act,” Patrick Anderson, a senior attorney with Southern Environmental Law Center, said in a statement posted online.
Eligibility for the discounted Starlink service is dependent on service address and a map online shows coverage in Memphis, Southhaven, and Collierville. As Bloomberg notes, the price of Starlink can range in price from $55 to $130 per month depending on the plan.
SpaceX went public earlier this month, catapulting founder Elon Musk to trillionaire status. The stock price has been on a rollercoaster since its recent debut, but has spent recent days recovering in price. The stock closed at just over $170 on Tuesday, down from a high of $201 on June 16. Musk’s estimated net worth is listed as $1.1 trillion by Forbes, down from $1.4 trillion on June 16. There’s no denying that Musk’s net worth is intimately tied to SpaceX’s stock price.
Representatives for xAI didn’t respond to questions emailed Tuesday. Gizmodo will update this article if we hear back.
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