xAI Secures Permit for Gas Turbines Amid Legal Threats from Environmental Group

Yesterday, the county regulatory authorities granted xAI permission to operate 15 gas turbines at its data center located near Memphis, despite the looming threat of a lawsuit.

The Southern Environmental Law Center (SELC) reported that Elon Musk’s AI company is currently running 35 generators without the necessary permits. Together, these generators have the capacity to produce up to 421 megawatts of electricity. The legal organization announced that it intends to file a lawsuit against xAI for violations of the Clean Air Act on behalf of the NAACP.

Recently, the company secured $10 billion in financing, which was evenly split between debt and equity.

The permit issued by the Shelby County Health Department stipulates that xAI may operate 15 SMT-130 solar generators with specific emission limits, capable of generating up to 247 megawatts. According to SELC, the company had already been running eight similar generators without the required approvals, although they noted that the operational generators are equipped with adequate emission control systems.

Under the terms of the permit, xAI is still allowed to emit a considerable amount of pollutants into the atmosphere over the next 12 months, including 87 tons of smog-forming NO_x, 94 tons of carbon monoxide, 85 tons of volatile organic compounds, 73 tons of particulate matter, and nearly 14 tons of hazardous air pollutants, such as 9.8 tons of formaldehyde, which is a known carcinogen. The company is required to maintain its own emissions records.

Before the permit was granted, a local organization in Memphis stated it had allocated $250,000 for an independent air quality study.

The city of Memphis conducted its own air quality testing in June; however, SELC raised several concerns regarding the methodology used in these tests.

SELC noted that the contractor conducting the tests did not measure ozone levels. Additionally, testing occurred on days when winds were blowing xAI’s pollutants away from the two closest testing sites. The contractor also placed testing equipment either directly in front of buildings or in close proximity, potentially affecting the results.

Previously, the health department stated that it lacked the authority to permit the use of «mobile» gas turbines that operate for less than 364 days, indicating that such cases fall under the jurisdiction of the Environmental Protection Agency. SELC argued that this interpretation of the law is «incorrect» and that the letter justifying inaction contains «no legal analysis.»

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[Source](https://techcrunch.com/2025/07/03/xai-gets-permits-for-15-natural-gas-generators-at-memphis-data-center/)