xAI's expansion in Memphis has been the subject of debate and criticism, with some outlets reporting on lawsuits and opposition from groups such as the NAACP and the SELC. The company has reportedly won a permit for a power plant to support its data center expansion, but the status of its operations and leadership is unclear, with some co-founders having left. The issue appears to be part of a broader discussion about the growth of data centers in the region, with nearby Nashville considering restrictions.