xAI is facing a lawsuit for operating over 400 MW of gas turbines without permits

xAI, the operator of the Colossus data center near Memphis, is embroiled in a legal battle for allegedly running a significant number of natural gas turbines without the necessary permits. According to the Southern Environmental Law Center (SELC), the company has installed and operated a minimum of 35 combustion turbines at the site within the past year, bypassing essential preconstruction and operational air permits. The SELC, which represents the NAACP in this matter, has issued a notice of intent to sue xAI over violations of the Clean Air Act. This legal requirement necessitates that a notice be sent 60 days prior to filing a lawsuit. The turbines in question reportedly have the capacity to emit over 2,000 tons of nitrogen oxides (NOx) annually, contributing to regional smog issues. Memphis has already been recognized for having some of the poorest air quality in the area, and in 2024, it was labeled an asthma capital of the United States by the Asthma and Allergy Foundation of America due to elevated rates of asthma-related emergencies and fatalities. SELC claims that xAI did not secure the necessary permits from both federal and local authorities before the installation of these generators, nor did it operate them with appropriate air quality controls. At one stage, xAI's turbines could generate 421 megawatts of electricity. Last summer, the Shelby County Health Department (SCHD) stated that xAI's turbines were exempt from permitting; however, the SCHD has not publicly clarified the basis for this exemption or what exactly xAI was operating on-site. In an effort to investigate the Colossus site, SELC commissioned aerial photography in March, which revealed the presence of 35 turbines positioned around the data center. Additional thermal images taken in April indicated that at least 33 of these turbines were operational. Following this photographic evidence, the Greater Memphis Chamber announced that some turbines would be removed. They stated that the temporary natural gas turbines, originally used to power Phase I GPUs prior to connecting to the grid, would be decommissioned over the next two months, although around half of the turbines would remain until a second substation is completed. A later flight on June 15 confirmed that at least 26 turbines were still active, including three newly installed units, bringing the total generating capacity to approximately 407 megawatts—just 14 megawatts short of the previous figure. SELC emphasized that, barring a few exceptions not applicable in this case, any new sources of criteria pollutants in Tennessee must acquire both preconstruction approval and an operational permit to emit pollutants.