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xAI Secures Permits for 15 Gas Generators at Memphis Data Center

▼ Summary

– County regulators granted xAI permits to operate 15 natural gas turbines at its Memphis data center, despite potential legal action.
– The Southern Environmental Law Center (SELC) claims xAI operated up to 35 unpermitted generators capable of producing 421 megawatts and plans to sue for Clean Air Act violations.
– The Shelby County permit allows xAI to emit significant pollution, including 87 tons of NOx and 9.8 tons of formaldehyde annually, while requiring self-reported emissions records.
– A Memphis community group allocated $250,000 for an independent air quality study, while the SELC criticized the city’s June testing for methodological flaws.
– The Shelby County Health Department previously claimed it lacked authority to permit “mobile” turbines operating under 364 days, a stance the SELC called legally unsupported.

Local officials have approved xAI’s request to operate 15 natural gas-powered generators at its Memphis-area data center, despite facing potential legal challenges over environmental concerns. The decision comes after allegations that the company, backed by Elon Musk, had been running up to 35 unpermitted generators capable of producing 421 megawatts of electricity. Environmental advocates have threatened legal action, claiming violations of federal air quality standards.

The newly issued permit from the Shelby County Health Department allows xAI to use 15 Solar SMT-130 generators equipped with emissions controls, collectively generating up to 247 megawatts. While eight of these units were reportedly already in use without authorization, regulators confirmed they include required pollution mitigation measures. However, the permit still permits substantial emissions, including 87 tons of nitrogen oxides, 94 tons of carbon monoxide, and nearly 14 tons of hazardous pollutants annually, among them formaldehyde, a known cancer-causing agent.

Community groups have raised alarms over potential health risks, with one organization securing funding for an independent air quality assessment. Earlier this year, Memphis conducted its own testing, but critics argue the methodology was flawed. Tests omitted ozone measurements and were conducted under wind conditions that skewed results, according to environmental watchdogs. Equipment placement near buildings also raised questions about data accuracy.

Previously, the health department had claimed limited jurisdiction over temporary generator use, deferring to federal regulators. Legal experts disputed this interpretation, calling the agency’s stance legally unsupported. The controversy highlights tensions between rapid tech infrastructure growth and environmental safeguards, particularly in communities already burdened by industrial pollution.

With $10 billion recently raised through a mix of debt and equity, xAI continues expanding its operations. The situation underscores broader debates about balancing energy demands for AI development with public health protections. Local activists vow to keep pressing for stricter oversight as the company moves forward with its plans.

(Source: TechCrunch)

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