xAI Faces Lawsuit for Operating Over 400 MW of Gas Turbines Lacking Proper Permits
The Colossus data center operated by xAI near Memphis is facing a legal challenge regarding the use of a fleet of natural gas turbines without the required permits.
“Over the past year, xAI has installed and operated at least 35 combustion turbines, along with other sources of air pollution, at the Colossus facility without obtaining the necessary preconstruction or operational air permits,” the Southern Environmental Law Center (SELC) reported in a letter to xAI.
This letter, submitted on behalf of the NAACP, serves as a notice of intent to sue xAI for potential violations of the Clean Air Act. The law necessitates that such a notice be sent 60 days before filing a lawsuit.
The gas turbines are estimated to emit more than 2,000 tons of NOx each year, contributing to smog formation.
According to SELC, Memphis already suffers from “some of the worst air quality in the region.” In 2024, Memphis was identified as an asthma capital by the Asthma and Allergy Foundation of America, due to increasing rates of emergency room visits and asthma-related fatalities.
SELC asserts that xAI failed to secure the required permits from federal or local authorities prior to installing the generators. Furthermore, they claim the turbines were not operated with adequate air pollution controls. At one point, xAI had enough turbines to generate 421 megawatts of electricity.
Last summer, the Shelby County Health Department, which oversees local air pollution regulations, indicated that xAI’s turbines were exempt from permits. However, SELC pointed out that SCHD had not publicly disclosed the operational details or legal grounds for any exemption related to xAI.
To assess the conditions at the Colossus site, SELC commissioned an aerial photographer to take images of the facility in March. The images confirmed that xAI had installed 35 turbines around the perimeter of the data center. Thermal images captured about a month later showed that at least 33 of the turbines were operational, according to SELC.
Following these images, the Greater Memphis Chamber, a local economic development organization, announced that xAI had dismantled some of the turbines.
“The temporary natural gas turbines that powered the Phase I GPUs prior to connecting to the grid are being demobilized and will be removed from the site within the next two months,” said the Memphis Chamber. “Approximately half of the operational turbines will remain” until the completion of a second substation that connects the data center to the grid. Once the substation is functional, the turbines will serve as backups.
However, a flight on June 15 revealed that at least 26 turbines were still on-site, including three newly installed units since the April flight. The total generating capacity was approximately 407 megawatts, just 14 megawatts less than the previous output.
“With very few exceptions — none applicable here — any new sources of criteria and other air pollutants in Tennessee must obtain preconstruction approval via an air permit, as well as a permit for operation and pollutant emissions,” SELC noted.
