- xAI receives permits for 15 natural gas generators at Memphis data center.
- SELC plans lawsuit over previously unpermitted turbine operations.
- Permits allow significant emissions, including toxic formaldehyde.
- Community and environmental groups challenge testing and oversight.
The Shelby County Health Department has granted Elon Musk’s artificial intelligence company, xAI, permits to operate 15 natural gas generators at its Memphis data center.
The approval has sparked criticism from environmental and civil rights advocates, particularly the Southern Environmental Law Center (SELC), which plans to file a lawsuit against the company for alleged violations of the Clean Air Act.
According to SELC, xAI has already been operating as many as 35 gas-powered turbines without permits. These generators, collectively capable of producing up to 421 megawatts of electricity, have been powering the company’s data center operations.
The SELC, representing the NAACP, argues that xAI’s actions are not only unlawful but pose a serious risk to public health and environmental quality.
Air Pollution and Emissions Concerns
The new permits allow xAI to run 15 Solar SMT-130 turbines with emissions controls, capable of generating up to 247 megawatts. SELC claims the company has already been using eight of these turbines without proper permits, although with some pollution controls in place.
Even under the newly approved permits, xAI is allowed to release large amounts of pollutants annually. The permit caps emissions at 87 tons of nitrogen oxides (NOx), 94 tons of carbon monoxide, 85 tons of volatile organic compounds (VOCs), 73 tons of particulate matter, and nearly 14 tons of hazardous air pollutants.
Among those is up to 9.8 tons of formaldehyde, a known cancer-causing substance. The company is responsible for tracking and reporting its own emissions, a move that environmental groups say lacks accountability.
Community Pushback and Testing Issues
Local groups and residents have voiced strong concerns about the potential health impacts of xAI’s operations. A Memphis-based community organization announced it had secured $250,000 to fund an independent air quality study.
Meanwhile, the City of Memphis carried out its own testing in June, though the SELC raised several red flags about how the tests were conducted.
Critics pointed out that the tests were done on days when the wind carried emissions away from monitoring stations, potentially understating pollution levels.
Additionally, the placement of testing equipment near buildings may have compromised the accuracy of the data. The SELC emphasized that ozone levels, a key air quality metric, were not measured at all.
Regulatory Interpretation Challenged
Before issuing the permits, the Shelby County Health Department had previously declined to regulate the turbines, citing an exemption for “mobile” units operating less than 364 days.
The department claimed that such operations fell under the jurisdiction of the Environmental Protection Agency (EPA). However, the SELC strongly disputed that interpretation, calling it legally incorrect and unsupported by analysis.
xAI’s data center expansion comes just after the company raised $10 billion through a combination of debt and equity funding, highlighting its aggressive push to scale operations.
But the legal and regulatory conflicts now surrounding the project may prove a significant test of environmental oversight in the age of rapidly expanding AI infrastructure.
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