Elon Musk's artificial intelligence venture, xAI, is under fire from environmental and health advocates for operating unpermitted natural gas turbines at its newly established data center in Memphis, Tennessee. The controversy erupted following the Southern Environmental Law Center's complaint to local and federal regulators, urging an investigation into xAI’s use of the turbines.
Opened in June within a former Electrolux factory, xAI's facility has drawn attention not only for its cutting-edge AI research but also for its environmental impact. The data center, which boasts 100,000 Nvidia H100 processors, has installed at least 18 gas turbines. These turbines, essential for powering the facility, have been criticized for contributing to Memphis's existing smog problems.
The Southern Environmental Law Center’s letter highlights that these turbines emit nitrogen oxides (NOx), which exacerbate air pollution in a region already struggling with poor air quality. Shelby County, where Memphis is located, has received an "F" grade for smog from the American Lung Association. The Centers for Disease Control and Prevention warn that even low levels of NOx can cause respiratory issues and other health problems.
xAI plans to eventually transition to power from local utilities, Memphis Light, Gas and Water, and the Tennessee Valley Authority, which have begun upgrades to accommodate the increased demand. However, until that shift is complete, the company’s reliance on unpermitted turbines remains a concern.
The Shelby County Health Department has stated that, due to the mobile nature of the turbines and their operation duration, it does not currently have permitting authority. Meanwhile, xAI has not commented on the allegations, and the EPA has yet to respond.
Musk’s ventures have previously faced similar scrutiny for environmental compliance issues, raising questions about regulatory oversight and corporate responsibility.