Starlink is offering half-price internet near xAI data centers, but critics want the pollution fixed

The takeaway: SpaceXAI is offering half-price Starlink service to people living near its Memphis data centers, while the company continues to face criticism over the generators used to power its AI operations. The promotion could lower connectivity costs for households without reliable fiber access, but it offers limited practical advantage where affordable high-speed cable or fiber service is already available.

With roughly 2,000 reported subscribers since the offer was announced in July, compared with more than 250,000 households across Memphis, the discount appears unlikely to ease broader concerns about the company's unpermitted power generation and its environmental impact.

The deal applies to residents of Memphis and Southaven, Mississippi. SpaceXAI is also waiving the upfront rental fee for Starlink's new V5 hardware kit, which can otherwise cost up to $349. In a post on X, SpaceXAI Memphis said thousands of people had signed up.

The discount cuts the price of Starlink's entry-level residential plan from $55 a month to $27.50. Its 200 Mbps plan falls from $85 to $42.50, and the Max plan drops from $130 to $65.

For some households, the deal could be useful. Residents in parts of Memphis and Southaven still lack fiber service, and some commenters in the r/memphis subreddit said the discounted satellite service could fill that gap. Others said it could serve as a backup connection for people who work from home or need internet service that is less dependent on local cable infrastructure.

The offer may be less appealing to households that already have access to fiber. AT&T and Xfinity plans often start at about $35 to $40 a month and can provide speeds of up to 300 Mbps. Starlink's lower price may help customers watching their bills, but its 100 Mbps entry plan would not necessarily be faster than an available fiber connection.

SpaceXAI is running the same Starlink promotion in Vermilion Parish, Louisiana, where SpaceX plans to build a $100 billion spaceport.

The timing has drawn attention because SpaceXAI's Memphis data-center operations remain under scrutiny over their power supply. The company has been criticized for installing turbines without permits to support the facilities' growing electricity needs.

The Southern Environmental Law Center said the Starlink discount does not address residents' complaints about pollution. "Communities in Memphis and North Mississippi aren't asking for discounted internet service," SELC Senior Attorney Amanda Garcia told PCMag. "They're asking xAI to shut down its illegal, unpermitted power plant that continues to pump out staggering amounts of harmful pollution, including smog-forming nitrogen oxides, fine particulate matter, and hazardous chemicals like formaldehyde."

SpaceXAI has said it will remove all 69 unpermitted generators. However, the company expects the process to take about a year as it brings a 1.2-gigawatt power plant online. The new plant is intended to replace the temporary generation used to keep the data centers running.

The company's claim of 2,000 local subscribers is notable, but Memphis has more than 600,000 residents and more than 250,000 households, based on the census figures cited in the provided material. That means the promotion has attracted subscriptions from fewer than 1% of households in the city.