Elon Musk’s artificial intelligence venture, xAI, is facing legal action for allegedly violating the Clean Air Act at its Memphis-based AI data center. The Southern Environmental Law Center (SELC) issued a 60-day notice of intent to sue, citing unpermitted air pollution at xAI’s “Colossus” facility.
The SELC, representing the National Association for the Advancement of Colored People (NAACP), the oldest civil rights group in the U.S., claims xAI deployed dozens of gas-fired turbines without proper environmental oversight. These turbines, used to circumvent delays in obtaining a grid connection, are allegedly emitting harmful pollutants including nitrogen oxides and formaldehyde without the necessary air quality permits.
“Over the past year, xAI has installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits,” the SELC’s notice states.
Ignored warnings, health risks in majority-black neighborhood
The SELC further claims that xAI neglected to use “Best Available Control Technology,” such as selective catalytic reduction systems, which are required by law to limit harmful emissions from major sources.
“We have on four different occasions sent formal requests to the local health department asking for them to use their authority to enforce the law,” said SELC senior attorney Patrick Anderson. “Obviously, that hasn’t happened.”
The Colossus site sits on the grounds of a former electronics factory in South Memphis, adjacent to Boxtown, a majority-Black neighborhood already burdened by industrial pollution. The civil rights group is seeking injunctive relief, civil penalties, attorney fees, and litigation costs.
Soaring AI demand strains power, permits
The controversy emerges as AI infrastructure demand explodes. Musk’s firm is already building “Colossus 2” in Memphis, a second data center expected to require over 1 gigawatt of power, an enormous scale for a private facility.
Driven by AI and cloud computing, the U.S. Department of Energy projects data center power demand could double or triple by 2028. McKinsey recently forecast that $6.7 trillion in global investment will be needed by 2030 to meet growing infrastructure needs.
The strain on electricity and environmental resources is prompting companies to seek alternative energy deals. Amazon, for instance, recently signed a long-term agreement with Talen Energy to power its AI data centers using nuclear energy through 2042 and plans to invest over $13 billion in AI and cloud facilities in Australia.
