Start-up accused of violating Clean Air Act through the use of natural gas-fired turbines
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Elon Musk’s xAI, which recently merged with SpaceX, is under legal pressure over pollution caused by its data centre operations in Southaven, Mississippi. Environmental and civil rights organisations, represented by the Southern Environmental Law Center and Earthjustice on behalf of the NAACP, have filed a notice of intent to sue xAI and its subsidiary MZX Tech LLC. The plaintiffs argue that xAI’s use of numerous natural gas-fired turbines violates the Clean Air Act and poses health risks to nearby communities. CNBC reports.
The controversy is not new. For more than a year, residents of Memphis, Tennessee, where xAI also operates data centres using similar turbines, have been voicing concerns about air pollution. Plans for a third data centre in Southaven, promoted by Mississippi governor Tate Reeves as a source of jobs, have further fuelled the debate.
Musk, who wants to compete with industry heavyweights such as OpenAI and Google in the generative AI market, has chosen the Memphis region as a key hub for his AI ambitions. However, his aggressive development strategy appears to come at the expense of environmental regulations. His social media platform X (formerly Twitter), now owned by xAI, has also become embroiled in controversy over the Grok AI chatbot, which enables the creation and spread of harmful deepfake content, including material involving child sexual abuse.
Last year, residents of Boxtown, a predominantly Black community in South Memphis, testified about harmful fumes and health effects caused by emissions from xAI’s turbines. Scientific research by the University of Tennessee confirmed the turbines’ contribution to air pollution in the area. Although legal action was initially threatened, it was postponed when the Shelby County Health Department allowed xAI to classify the turbines as temporary and issued permits for their use.
Recent clarifications from the Environmental Protection Agency (EPA) have invalidated that classification, as the turbines cannot be designated as temporary installations. Nevertheless, xAI continues to operate the turbines across state lines without having obtained the necessary federal permits. Noise pollution has also become a major local issue. Residents report that, even indoors, they are constantly plagued by headache-inducing noise coming from the turbines.
In Mississippi, a public hearing has been scheduled to address community concerns about xAI’s expansion plans, including the installation of 41 permanent turbines at the Southaven facility. The case reflects a broader trend of tension between tech giants and communities, as massive data centres put pressure on local resources and cause environmental problems. Similar opposition has led to the cancellation of data centre projects by Microsoft in Wisconsin and Amazon in Arizona.
Patrick Anderson, senior attorney at SELC, reiterated that xAI, like any other company, must comply with legal requirements. He stressed that ignoring environmental rules endangers citizens’ health and wellbeing, and underlined their determination to hold xAI to account.
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