SpaceX has decided to offer Starlink internet at half price to residents in and around Memphis in the U.S. state of Tennessee.

Tech outlet TechRadar reported on Tuesday that SpaceX has introduced a discounted plan for subscribers near the Colossus data centre operating in the Memphis area, waiving new equipment costs.

Eligible areas include parts of Southaven near Memphis. Users can check online whether their address qualifies for the discount. New subscribers do not have to pay initial hardware costs. They can share discounts with nearby friends or family through referrals. The discount ends if the address is moved outside the eligible area.

SpaceX said it will continue investing in the Memphis area as it announced the measure. Some interpret the discount as aimed more at easing local backlash than simply expanding subscribers. The data centre in the Memphis area is operated for SpaceX affiliate xAI, and local opposition has persisted over electricity and water use.

The dispute centres on how the data centre is operated. xAI is currently being sued on allegations of Clean Air Act violations. The lawsuit argues that methane gas turbines used as a power source for the Colossus data centre did not receive required permits.

Local civic groups are also strongly opposed. Abre Conner (아브레 코너), an official with the National Association for the Advancement of Colored People (NAACP), said xAI has said since the early days of its Memphis operations that "our homes, churches and playgrounds will not become sacrifice zones for Big Tech's convenience". The comment raises concerns that the data centre is burdening local living conditions.

Online reactions were mixed. One Reddit user mocked the discount as a "discount asking people not to stop the operation of illegal natural gas turbines". That suggests many believe a price cut alone will be unlikely to shift local opinion.

Separately from SpaceX, xAI has also introduced additional steps. The company said it will restart construction next year on a wastewater recycling facility that had been halted. The facility was presented as a way to supply clean water to the data centre and local authorities. It is not confirmed why construction was suspended.

In this situation, the Starlink discount appears largely aimed at compensating residents near the data centre with direct benefits. It remains unclear whether local conflict can be resolved in the short term, with environmental regulation and permitting issues, disputes over the power source and water use concerns overlapping. How xAI responds to the lawsuit and resumes the wastewater recycling facility is expected to be a key focus for how public sentiment in Memphis develops.