XAI Lawsuit: Operating Gas Turbines Without Permits

xAI Data Center Faces Lawsuit Over Air Emissions

The xAI data center, known as Colossus, located outside of Memphis, Tennessee, is currently the subject of legal action. The lawsuit centers around allegations of operating a substantial number of natural gas turbines without the required permits.

Allegations of Permit Violations

According to a notice sent by the Southern Environmental Law Center (SELC), xAI has installed and been utilizing a minimum of 35 combustion turbines and other pollution-emitting equipment at the Colossus site. This activity allegedly occurred without securing the necessary preconstruction and operating air permits.

The SELC submitted this letter on behalf of the NAACP, formally notifying xAI of their intent to pursue legal action for violations of the Clean Air Act. Federal law mandates a 60-day notice period before filing such a lawsuit.

Potential Environmental Impact

These gas turbines possess the capacity to release over 2,000 tons of nitrogen oxides (NO_x) annually. NO_x is a group of chemicals known to significantly contribute to the formation of smog.

Memphis already struggles with compromised air quality. In 2024, the Asthma and Allergy Foundation of America designated Memphis as a national “asthma capital” due to elevated rates of emergency room visits and fatalities linked to asthma.

Details of the Alleged Non-Compliance

SELC contends that xAI neglected to acquire permits mandated by both federal and local regulatory bodies prior to the installation of the generators. Furthermore, the organization claims the turbines were operated without adequate air pollution control measures in place.

At its peak, xAI reportedly had sufficient turbines to generate 421 megawatts of electrical power.

Conflicting Statements from Local Authorities

Last summer, the Shelby County Health Department (SCHD), responsible for overseeing local air pollution adherence, indicated to the press that xAI’s turbines were exempt from permitting requirements. However, the SCHD did not publicly disclose the specifics of xAI’s operations on the site, nor the rationale behind any such exemption.

Evidence Gathered by SELC

To investigate the situation at the Colossus site, SELC commissioned an aerial photographer to capture images of the facility in March. These photographs revealed the presence of 35 turbines positioned around the data center’s perimeter.

Subsequent thermal imaging conducted approximately one month later confirmed that at least 33 of these turbines were actively operational, according to SELC.

Turbine Demobilization and Continued Operation

Following the release of these images, the Greater Memphis Chamber, a local economic development agency, stated that xAI was in the process of removing some of the turbines.

The Memphis Chamber announced that the temporary natural gas turbines, used to power the initial GPUs before grid connection, were being demobilized and would be removed over a two-month period. They also indicated that roughly half of the operating turbines would remain until a second substation completed the data center’s connection to the power grid.

Once the substation was operational, these turbines would function as backup power sources.

Recent Findings and Ongoing Concerns

However, a subsequent aerial survey conducted on June 15 revealed that at least 26 turbines were still in place, including three newly installed units since the April flight. The total generating capacity remained substantial, at approximately 407 megawatts – only 14 megawatts less than the previous level.

SELC emphasizes that, with limited exceptions, new sources of regulated air pollutants in Tennessee are legally obligated to obtain preconstruction approval through an air permit, as well as a permit to operate and emit pollutants.