xAI, an artificial intelligence company founded by Elon Musk, is being sued. Instead, they ran more than 400 megawatts worth of gas-fired peaker plants without the required operating permits. The Southern Environmental Law Center (SELC) has formally notified xAI of its intent to sue for violations of the Clean Air Act, citing the company’s failure to secure required federal and local permits before installing and operating the generators.
In 2024, Memphis received the dubious distinction of being named asthma capital of the nation. In retaliation, xAI built 35 of the largest turbines in the US outside the perimeter of its data center. When the project was at full capacity, these turbines were able to produce 421 megawatts of electricity. Thermal imaging confirmed that at least 33 of these turbines were running. This finding led to new worries about air quality in a state and region that has long struggled with the burden of pollution.
On June 15, a small aerial survey found at least 26 turbines still in operation. This conclusion came even after all three of those new turbines had been installed since our last flight in April. The announced joint venture’s turbines have an inflating total generating capacity of around 407 megawatts. To these concerns, the SELC added that these gas-fired turbines would emit over 2,000 tons of nitrogen oxides (NOx) annually. This deadly emission would only add to the air quality crisis faced by Memphis.
SELC’s letter to xAI pointed out that “over the past year, xAI has installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits.” The nonprofit underscored Tennessee’s legal obligation to establish new sources of air pollutants. They have to get pre-construction approval and get an operating permit.
In its communications, SELC noted, “Memphis already had some of the worst air quality in the region.” The Asthma and Allergy Foundation of America found that Memphis experienced a spike in asthma emergency room visits for 2024. Unfortunately, this increase was paralleled with an increase in asthma mortality. The Shelby County Health Department plays a hands-on role in monitoring local air pollution and enforcement action. SELC emphasized this harm in our notice to xAI.
xAI is currently working through these legal hurdles. As many as half of its operating turbines will remain offline until a second substation is constructed to connect the data center to the electrical grid. Meanwhile, a representative from The Memphis Chamber stated, “The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.”