Memphis is raking in millions from Elon Musk’s data centers—so much that even the city’s Democratic mayor is acknowledging the windfall, despite lingering concerns from residents. Mayor Paul Young revealed this week that the project generated a jaw-dropping $54 million in tax revenue this year alone, more than double the $25 million it brought in last year.
“I think this year was 54 million dollars in taxes that have been generated,” Young told reporters. “Last year, when they brought in about 25 million, it was already the second-largest taxpayer in Shelby County.” The numbers back up Musk’s recent boast at a New York investment conference, where he brushed off criticism of data centers by pointing to Memphis’s economic surge.
“Memphis Is Booming”
At the Baron Investment Conference earlier this month, Musk pushed back against the growing backlash over AI data centers, arguing that local economies benefit dramatically. “In Memphis, you know, Memphis is booming because of SpaceX,” he said. “The restaurants are full. The hotels are full.” He claimed the facilities pay “twice the prevailing wage” and pump huge sums into local coffers.
Musk also took a swipe at media coverage, quipping, “Nobody writes about it”—before adding, “There are some stories.” He emphasized the project’s broader impact, including school funding and “tremendous” tax revenue for the city and county.
Debating the Trade-Offs
While Young welcomed the financial boost, he acknowledged residents’ worries about noise, traffic, and environmental effects. “We want to make sure we articulate what protections we’re putting in place,” he said, referencing a 90-day executive order aimed at addressing concerns. The debate isn’t unique to Memphis—data centers have sparked similar clashes elsewhere between economic gains and quality-of-life issues.
A recent PwC study found the sector now supports 5.5 million U.S. jobs, up 17% in a year, while its GDP contribution jumped 10% to $301.7 billion. In places like Dallas County, a single mid-sized data center can generate $174 million in taxes over five years. But in Memphis, the money is already flowing—and for now, that’s hard to argue with.
Source: www.dailywire.com — https://www.dailywire.com/news/musks-data-centers-deliver-a-payday-thats-hard-to-argue-with