Adapted by:
Matías S. Zavia
WriterAerospace and energy industries journalist at Xataka.
Karen Alfaro
WriterCommunications professional with a decade of experience as a copywriter, proofreader, and editor. As a travel and science journalist, I've collaborated with several print and digital outlets around the world. I'm passionate about culture, music, food, history, and innovative technologies.
This time, Tesla CEO Elon Musk’s controversy has nothing to do with rockets or political comments on social media platforms. Instead, it concerns a potentially illegal facility that may be endangering public health in his Memphis neighborhood.
In short. Musk’s AI startup, xAI, faces a possible federal lawsuit for using a gas-fired power plant to run its massive Memphis data center. According to the plaintiffs, the plant operates without the required permits and pollutes the region’s air.
The center of the conflict is the Colossus data center, where xAI trains its AI models using hundreds of thousands of specialized Nvidia chips. To meet the enormous energy demands of these chips, the company installed dozens of natural gas turbines. The Southern Environmental Law Center (SELC) now threatens to sue the company for “flagrant violations” of the Clean Air Act.
Aerial photos and thermal imaging show xAI operating without the necessary permits. According to the SELC’s notice, “Over the last year, these turbines have pumped out pollution that threatens the health of Memphis families. This notice paves the way for a lawsuit that can hold xAI accountable for its unlawful refusal to get permits for its gas turbines.”
Due to xAI’s lack of transparency and vague responses from local authorities—who claimed the turbines were exempt from permits—the SELC hired an aerial photographer to document the site. In March, 35 turbines were in operation. In April, at least 33 remained fully operational, emitting large amounts of heat.
A third flight on June 15 showed that 26 turbines were still next to Colossus. xAI had also installed three new, larger turbines. The total generating capacity reached about 407 megawatts—just 14 megawatts short of the March peak.
Authorities have backed xAI. In early May, the Greater Memphis Chamber of Commerce issued a statement aiming to calm concerns. It said the turbines were “temporary” and would be “shut down and removed” within two months, once the data center connects to the power grid.
The chamber also noted that about half the turbines would remain to power Phase II of the Colossus project until a second substation is ready. At that point, the turbines would only serve as backup power.
The asthma capital. The issue becomes more alarming considering that Memphis already ranks among cities with the worst air quality in the U.S. In 2024, it was designated the nation’s “asthma capital” for its high rates of emergency room visits and asthma-related deaths.
A 400 MW gas-fired plant can emit more than 2,000 tons of nitrogen oxides per year—chemicals that contribute to smog. As companies like xAI, OpenAI and Google race to develop the most powerful AI models, the infrastructure needed to power them is straining power grids. This case shows that it may also push companies toward regulatory shortcuts at an environmental cost.
Image | Gage Skidmore
Related | 'Major Fail': Elon Musk Says He’s Fixing Grok After Chatbot Spews Answer He Doesn’t Like
View 0 comments