xAI will be sued for illegally launching a mega data center

The company xAI, founded by Elon Musk, was threatened with a lawsuit for operating 35 gas turbines in the Colossus data center near Memphis without the necessary permits. This was announced by SELC, an environmental advocacy organization representing the NAACP.

According to SELC, xAI installed equipment capable of emitting more than 2,000 tons of nitrogen oxides per year, a substance that exacerbates smog. In doing so, the company failed to obtain federal and local permits for either construction or operation, violating Clean Air Act requirements.

In 2024, Memphis was recognized as the “Asthma Capital” of the United States. Statistically, it has some of the highest rates of hospitalizations and deaths from asthma. SELC argues that xAI’s actions only exacerbate the environmental conditions in this region.

Local authorities had previously stated that the xAI turbines were allegedly unlicensable, but did not disclose the legal basis for this. SELC conducted its own investigation and, using aerial photography, recorded 35 turbines, of which at least 33 were operating.

Although xAI began dismantling some of the turbines in April, by mid-June there were still 26 units on site, including three new units. Total capacity had only dropped to 407 MW, almost as much as it had been previously.

SELC insists that nearly all sources of air pollution in Tennessee must obtain permits before operating. A lawsuit against xAI can be filed 60 days after formal notice if violations are not corrected.