Elon Musk offers Starlink discount to AI data center neighbors following air and noise pollution lawsuits — 50% off plans and free hardware rental

Residents of Memphis and Southaven, Tennessee, are eligible for a 50% discount on Starlink plans, as well as a waiver on hardware rental, as SpaceX’s way of investing in areas close to its data centers. According to the Starlink website, the discount would apply automatically based solely on the subscriber’s address, cutting the cost of a 100 Mbps plan from $55 (plus the $10 Monthly Kit Fee) to just $27.50. Even the most expensive Max plan, which could hit speeds of more than 400+ Mbps and costs $130 monthly (plus the $10 hardware rental), would drop to just $65.

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.

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.