What happened
Memphis Mayor Paul Young confirmed that Elon Musk’s data center project produced $54 million in tax revenue for the city and county this year. That figure is more than double the approximately $25 million generated last year, when the facility ranked as the second-largest taxpayer in Shelby County.
Young made the remarks after Musk claimed at a New York investment conference that Memphis is booming because of data centers, citing full restaurants and hotels and wages that sometimes reach twice previous local levels. Musk also said the project has supported local schools and predicted that community opposition would fade as prosperity spreads.
The mayor welcomed the revenue but said the city is also addressing resident concerns about environmental protection, quality of life, noise and traffic. He pointed to a 90-day executive order as part of the effort to establish safeguards while continuing discussions with the community.
Nationally, a PwC study commissioned by the Data Center Coalition found that data centers supported 5.5 million jobs in 2024, up 17 percent from 4.7 million the previous year, with direct GDP contribution rising to $301.7 billion. A U.S. Chamber of Commerce report estimated that a single 50-megawatt data center in a best-case scenario such as Dallas County could generate $174 million in tax revenue over five years.