Allegations of unauthorized gas turbines at Elon Musk's Memphis data center contributing to smog.

• Elon Musk's xAI is reportedly operating gas turbines in its Memphis, Tennessee data center, releasing pollutants into the air without proper authorization, according to environmental advocates.
• The American Lung Association gave the county where the xAI data center is located a failing grade "F" due to its poor air quality, which is already a major problem in Memphis.
• In July, Musk announced that xAI had started training its AI models at the facility utilizing 100,000 Nvidia H100 processors.

Environmental and health advocates are accusing Elon Musk's artificial intelligence startup, xAI, of contributing to the pollution problem in Memphis, Tennessee, by using natural gas burning turbines at its new data center without obtaining a permit.

The company announced the opening of its data center in June at a former Electrolux factory, following a $6 billion funding round at a $24 billion valuation. In a recent post on X, Musk revealed that xAI had started training its AI models at the facility using 100,000 H100 processors.

The Southern Environmental Law Center wrote to the Health Department in Shelby County and the Environmental Protection Agency's regional office this week, acting on behalf of local groups, to request an investigation into xAI's use of turbines without a permit and the resulting pollution.

The letter mentions that xAI has recently installed at least 18 gas combustion turbines, with the possibility of more in the future.

The company currently uses turbines to power the facility, but its future plan is to obtain electricity from Memphis Light, Gas and Water and the Tennessee Valley Authority.

According to CNBC, MLGW began supplying 50 megawatts of electricity to xAI in early August. Nevertheless, xAI needs an additional 100 megawatts. In response, MLGW has installed more circuit breakers and made upgrades to transmission lines in the area to accommodate the increased power demand from xAI.

In 2023, Musk, CEO of and SpaceX and owner of X, founded xAI to create large language models and AI products that could compete with those from and OpenAI. The company's first product is Grok, a politically incorrect chatbot that challenges OpenAI's ChatGPT. AI models need a lot of power for data training and processing.

In the letter, the advocates stated that this plant demands a huge amount of electricity.

The letter from advocates states that some of the 18 turbines on the property release air pollutants called NOx, which contribute to the longstanding smog problem in the area. The American Lung Association has given Shelby County an "F" grade for its smog.

The Centers for Disease Control and Prevention's website states that low levels of nitrogen oxides in the air can irritate a person's eyes, nose, throat, and lungs, resulting in coughing, shortness of breath, tiredness, and nausea. High levels of nitrogen oxides can cause rapid burning, spasms, and swelling of tissues in the throat and upper respiratory tract, as well as other serious health problems.

In Tennessee, businesses are generally mandated to acquire permits to operate the turbines utilized by xAI. These permits would regulate the maximum emission concentration and establish efficiency standards for the engines.

'Significant health and environmental impact'

To ensure that users do not exceed their planned pollution levels in the area, a permit would require air quality testing.

"The major issue is that the xAI project has had minimal transparency and public input, and it is already causing significant health and environmental harm to the local community, according to Amanda Garcia, a senior attorney with the Tennessee office of the Southern Environmental Law Center."

The letter from the groups stated that the existing xAI turbines have the potential to release an estimated 130 tons of nitrogen oxides annually, making them the ninth-largest source of pollutants in the county. These turbines can provide power to approximately 50,000 homes.

Without obtaining permits first, Musk-led companies have a history of constructing facilities or operating high-emissions equipment.

Earlier this month, CNBC reported that SpaceX repeatedly discharged industrial wastewater at its launch facility in Boca Chica, Texas, without a permit, which is a violation of the Clean Water Act.

In addition to Musk's tunneling venture, The Boring Co., being fined by Texas environmental regulators for discharging wastewater into the Colorado River in Bastrop, Texas, without obtaining permits or installing proper pollution controls, another similar issue was also penalized.

In 2021, a California air pollution regulator accused Tesla of illegally installing and modifying paint shop equipment that released hazardous air pollutants, without obtaining the necessary permit and reviews as mandated by the Clean Air Act.

Neither the EPA regional office in Memphis nor xAI responded to a request for comment.

Musk should shift his focus from investing in xAI to building affordable electric vehicles.