xAI sued for unauthorized operation of gas turbines exceeding 400 MW

xAI's Colossus data center near Memphis is facing legal action for running a series of natural gas turbines without obtaining the required permits.

"In the past year, xAI installed and operated at least 35 combustion turbines and other air pollution sources at the Colossus facility without securing the necessary preconstruction or operational air permits," stated the Southern Environmental Law Center (SELC) in a letter addressed to xAI.

The legal organization submitted this letter on behalf of the NAACP, serving as a formal notice of intent to sue xAI for breaching the Clean Air Act. The law mandates that such a notice be provided 60 days prior to initiating legal proceedings.

These gas turbines have the capacity to emit over 2,000 tons of nitrogen oxides (NO_x) annually, a family of chemicals known to contribute to smog formation.

Memphis already "struggles with some of the poorest air quality in the region," according to SELC. "In 2024, the Asthma and Allergy Foundation of America designated Memphis as the nation's asthma capital, citing high rates of asthma-related emergency room visits and fatalities."

SELC claims that xAI did not secure the permits required by federal and local authorities before installing the generators. It further alleges the company operated them without appropriate air pollution control systems. At its peak, xAI had enough turbines to produce 421 megawatts of electricity.

Last summer, the Shelby County Health Department (SCHD), responsible for local air pollution compliance, "informed reporters that xAI's turbines were exempt from permitting, despite not publicly disclosing what xAI was operating on its property or the legal justification for this exemption," SELC reported.

Save $200+ on your TechCrunch All Stage pass

Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day of strategic insights, workshops, and valuable networking.

Save $200+ on your TechCrunch All Stage pass

Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day of strategic insights, workshops, and valuable networking.

To investigate activities at the Colossus site, SELC hired an aerial photographer to take pictures of the facility in March. The images showed xAI had installed 35 turbines around the data center's perimeter at that time. Thermal imaging captured about a month later indicated at least 33 of them were in operation, SELC stated.

Following the release of these images, the Greater Memphis Chamber, a local economic development group, announced that xAI had started removing some turbines.

"The temporary natural gas turbines used to power the Phase I GPUs before grid connection are currently being demobilized and will be entirely removed from the site within two months," the Memphis Chamber explained. "Approximately half of the operating turbines will remain" until a second substation finalizes the data center's connection to the electrical grid, the organization added, noting that the turbines would then serve as backup power sources once the substation is complete.

However, a flight on June 15 revealed at least 26 turbines still on site, including three new units installed since the April aerial survey. The total generating capacity stood at about 407 megawatts, only 14 megawatts less than the previous level.

"With very few exceptions — none applicable in this case — new sources of criteria and other air pollutants in Tennessee must receive preconstruction approval through an air permit, along with a permit to operate and emit pollutants," SELC emphasized.