A coalition of environmental and community organizations has raised concerns about xAI's gas turbines in Memphis, Tennessee, alleging that the company failed to obtain necessary air permits for its operations. Founded by Elon Musk in 2023 to develop artificial general intelligence (AGI), xAI recently established a large data center in Memphis, sparking concerns over its environmental impact.
The Southern Environmental Law Center (SELC) sent a formal letter on behalf of the coalition to Dr. Michelle Taylor, the Health Officer of Shelby County, requesting investigation and enforcement action against xAI.
Memphis has experienced high levels of ground-level ozone pollution in recent years, often exceeding the National Ambient Air Quality Standard (NAAQS) for ozone. These levels of ozone, commonly referred to as smog, exacerbate respiratory diseases such as asthma and emphysema. According to the EPA, children are particularly vulnerable to the adverse effects of ozone pollution.
SELC's letter emphasizes that Memphis residents are already exposed to unhealthy air, and xAI’s gas turbines may contribute significantly to further air quality deterioration if they are found to be operating without the appropriate air permits.
xAI’s data center has brought the company’s advanced AI supercomputer Colossus online just this week and expects to expand its capacity even further in the coming months. Elon Musk made the announcement on X, saying, "This weekend, the @xAI team brought our Colossus 100k H100 training cluster online. From start to finish, it was done in 122 days. Colossus is the most powerful AI training system in the world. Moreover, it will double in size to 200k (50k H200s) in a few months."
To meet the current electricity demands at the site, xAI has installed nearly 20 gas turbines, including four large turbines with a combined capacity of approximately 100 MW. These turbines are capable of emitting nitrogen oxides (NOx), a key contributor to ozone formation, at rates that could make them one of the largest sources of NOx emissions in Shelby County. Despite this potential impact, xAI has not applied for air permits for the turbines, according to the coalition’s letter.
The letter further notes that the four largest turbines—16 MW SMT-130 models—are well above the heat input capacity threshold that typically requires an air permit. The coalition urges the Shelby County Health Department to investigate whether these turbines were installed and are operating without the necessary permits.
In addition to air quality concerns, xAI's facility is drawing up to 1 million gallons of water per day from an existing water main to meet its operational needs. The company has future plans to construct a graywater recycling facility that could reduce the demand on Memphis’s aquifer by up to 10 million gallons per day. While this may alleviate some strain on the local water supply, community groups emphasize the importance of ensuring that these expansions are carefully regulated to prevent additional environmental stress on the region’s water and energy resources.
Under the Clean Air Act, stationary sources of air pollution, such as large gas turbines, are generally required to obtain air permits before construction and operation. The letter points out that turbines with a heat input greater than 10 MMBtu/hr, such as the SMT-130s, are subject to federal New Source Performance Standards (NSPS) and must comply with local air quality regulations.
xAI has stated that its turbines are being operated under an exemption allowing temporary installations without air permits for up to 364 days. However, the coalition argues that this exemption does not apply to the SMT-130 turbines due to their classification as stationary sources under the Clean Air Act.
The coalition is calling on the Shelby County Health Department to verify the operational status of xAI’s turbines and, if necessary, take enforcement action to halt operations until the proper permits are obtained. The letter references a 2021 enforcement action by the department in which another facility was ordered to cease operations for similar violations.
The community groups emphasize the importance of ensuring compliance with air quality regulations to protect public health and prevent further degradation of air quality in Memphis.
Despite significant environmental concerns raised by local groups, xAI has not responded to requests for comment on its operations or air permit status. As the Colossus supercomputer project expands, community groups further emphasize the need for oversight to prevent additional strain on the region’s water and energy resources.
This case highlights the growing tension between rapid technological advancement and environmental responsibility, particularly in cities like Memphis, already facing environmental challenges.
