xAI’s Colossus data centre in South Memphis is facing a lawsuit for operating over 400 megawatts of natural gas turbines without permits. The Southern Environmental Law Center (SELC) revealed that xAI has installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without obtaining the necessary preconstruction or operating air permits.
The environmental advocate issued a letter on behalf of the NAACP, serving as a notice of intent to sue xAI for violations of the Clean Air Act. SELC argued that the law requires organizations to submit such a letter 60 days in advance of filing a lawsuit.
xAI contributes to air pollution in Memphis
xAI is now facing a lawsuit for running over 400 MW of gas turbines without permits.
Not exactly the “clean future” PR they were aiming for.
Even AI needs to follow the rules.
— Cyril Gupta (@cyrilgupta) June 18, 2025
SELC found that the company’s gas turbines have the potential to emit more than 2,000 tons of nitrogen oxides (NOx) per year, a group of chemicals that contribute to smog. The environmental advocate also found that the turbines emit hazardous formaldehyde at levels exceeding EPA limits.
The entity also highlighted that Memphis already had some of the worst air quality in the region. SELC noted that Memphis was regarded as the asthma capital of the nation in 2024 by the Asthma and Allergy Foundation of America due to high rates of emergency room visits and deaths from asthma.
The environmental protector argued that xAI failed to obtain permits required by both the federal and local regulators before installing the generators. SELC also alleged that the tech company wasn’t operating the generators with proper air pollution controls. According to the report, xAI had enough turbines to generate 421 megawatts of electricity at one point.
SELC also said the Shelby County Health Department, which oversees local air pollution compliance, told reporters last summer that xAI’s turbines were exempt from permitting. The group added that, at the time, the department still had not disclosed publicly what xAI was operating on its side, nor the legal basis for any such exemption.
City officials have also previously acknowledged that xAI did not need permits for the turbines’ first year of use. The NAACP noted that the Shelby County Health Department had allowed xAI to operate above the law instead of working to reduce health issues known in the area, including cancer risks that are four times the national average.
xAI gets solutions for its turbines after connecting to the power grid
The entity acknowledged that it paid an aerial photographer to capture images of the Colossus site in March to determine what was happening at the facility. According to SELC, the photos showed that xAI had installed 35 turbines around the perimeter of the data centre at the time.
The environmental advocate also revealed that thermal images taken about a month later showed that at least 33 turbines were operational. After the images were taken, a local economic development agency, the Greater Memphis Chamber, said that xAI had removed some of the turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.”
-The Greater Memphis Chamber.
The organization also said that around half of the operating turbines will remain until a second substation completes the data centres’ connection to the grid. The Memphis Chamber also assured that the turbines would serve as backups once the substation was complete.
The SELC noted that a flight on June 15 showed that at least 26 turbines remained, including three new ones that had been installed since the April flight. According to the environmental protector, the total generating capacity was around 407 megawatts, just 14 megawatts shy of the previous amount.
The SELC maintained that new sources of criteria and other air pollutants in Tennessee must obtain pre-construction approval in the form of an air permit. They should also get a permit to operate and emit pollutants.
NAACP President and CEO Derrick Johnson argued that AI is evolving quickly and has the potential to offer some benefits to society if used correctly. He also criticized Elon Musk for putting the health of U.S. citizens for the sake of innovation.
Sharpen your strategy with mentorship + daily ideas - 30 days free access to our trading program
