The Colossus data center operated by xAI near Memphis is facing legal action over allegations that it has been operating dozens of natural gas turbines without the appropriate permits. According to a complaint from the Southern Environmental Law Center (SELC), which is representing the NAACP, xAI has reportedly installed and run at least 35 gas-powered combustion turbines generating significant air pollution without securing mandatory preconstruction and operational air quality permits.
Under the Clean Air Act, companies are required to announce their intention to file litigation 60 days prior to initiating legal action. In a notice sent to xAI, SELC outlined the potential severity of the issue, stating that these turbines have the collective capacity to release more than 2,000 tons of nitrogen oxides (NOx) per year. NOx pollutants notably contribute to smog and aggravate respiratory ailments.
Adding urgency to the situation is Memphis’ already poor air quality profile. As identified by the Asthma and Allergy Foundation of America in 2024, Memphis suffers from particularly high asthma rates, leading to frequent emergency room visits and increased mortality from respiratory illnesses.
SELC’s claims suggest that xAI neglected to obtain critical permits from both federal and county environmental regulatory bodies prior to setting up these generators. Furthermore, the group alleges that the turbines have been running without proper air pollution mitigation controls. At their peak use, the turbines provided about 421 megawatts of electricity development capacity, unregulated by official permits.
Complicating matters, last year the Shelby County Health Department indicated that xAI’s turbines were exempt from permitting requirements, although they never formally explained the legal basis behind that exemption, nor did they publicly clarify exactly what equipment xAI was operating.
Earlier this year, SELC hired an aerial photographer to document the site, who confirmed the presence of 35 turbines installed along the perimeter of the Colossus data center. Infrared imaging from subsequent inspections indicated that at least 33 were actively operational. Following public pressure, the Greater Memphis Chamber—a local economic development agency—later reported that xAI had begun to dismantle some of these turbines. According to their statement, many of the turbines were intended only as temporary installations until connection to the local electrical grid was completed, after which roughly half would remain as emergency backup energy sources.
Despite these assurances, a recent aerial inspection conducted on June 15 revealed that at least 26 turbines were still on site, including three newly installed since the last check. Collectively, these remaining turbines can generate around 407 megawatts—just shy of the facility’s previous maximum capacity.
Under Tennessee state law, virtually all new installations of air-polluting machinery must first secure air construction and operational permits, with only very limited exemptions—none of which, according to the SELC, apply to the Colossus site operations.
