Elon Musk’s artificial intelligence company, xAI, is facing potential legal action over air pollution caused by gas-fired turbines powering its Memphis data center.
On Tuesday, the Southern Environmental Law Center (SELC) issued a 60-day notice of intent to sue xAI for alleged violations of the Clean Air Act at its “Colossus” facility in Memphis, Tennessee.
The notice, filed on behalf of the National Association for the Advancement of Colored People (NAACP), the nation’s oldest civil rights organization, focuses on xAI’s decision to install dozens of natural gas turbines to power the facility rather than wait for a connection to the electrical grid.
According to SELC, the turbines are operating without the required air quality permits and are emitting harmful pollutants such as nitrogen oxides and formaldehyde, in violation of federal law.
“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 notice states.
Formal requests ignored
The notice further alleged that xAI failed to implement “Best Available Control Technology,” such as selective catalytic reduction, to curb emissions—another key requirement under the Clean Air Act for major pollution sources.
“We have, on four separate occasions, submitted formal requests to the local health department urging them to enforce the law,” said SELC senior attorney Patrick Anderson in a statement to Newsweek. “Obviously, that hasn’t happened,” he added.
Civil Rights Group Raises Alarm Over Persistent Air Quality Issues
The Colossus data center is situated at a former electronics manufacturing site in South Memphis, adjacent to Boxtown—a predominantly Black community already burdened by poor air quality due to existing industrial pollution.
“We are prepared to combat environmental racism at every turn,” the NAACP stated in a post on X.
The civil rights organization is seeking injunctive relief, civil penalties, legal fees, and litigation costs in the potential lawsuit.
Requests for comment were sent to both xAI and the NAACP, but no immediate responses were received.
Demand for Data Centers Soars
Musk’s xAI is currently developing a second, even larger facility in Memphis—Colossus 2—which will require at least 1 gigawatt of power.
Demand for data centers is soaring, fueled by the rapid expansion of cloud computing and artificial intelligence. The U.S. Department of Energy projects that data center energy demand could double or even triple by 2028.
According to a May report by research firm McKinsey, meeting global demand by 2030 will require an estimated $6.7 trillion in data center investments.
“AI’s unprecedented demand is running up against constraints in data center capacity and electricity supply, as AI firms struggle to achieve profitability amid rising operational costs,” said Nick Ruck, director at LVRG Research. “Institutions estimate that AI will drive a 165% increase in data center demand by 2030.”
Amazon recently signed a long-term agreement with Talen Energy to supply nuclear power for its AI data centers in Pennsylvania through 2042. The company also announced plans to invest over $13 billion in expanding its AI and cloud infrastructure in Australia.
