xAI Operating 59 Unpermitted Gas Turbines for Tennessee Data Center, Documents Show

Elon Musk's artificial intelligence company, xAI, has installed 59 natural gas turbines to power its Colossus 2 data center in Tennessee without securing federal clean air permits, according to regulatory communications reviewed by Reuters. The number of turbines is nearly double what the company had previously acknowledged and is at the center of a legal dispute over public health and environmental justice.

Unpermitted Power Generation

The turbines are located just across the state line in Southaven, Mississippi, to power the Memphis-based data center. Communications obtained by Reuters between xAI's consultant and the Mississippi Department of Environmental Quality (MDEQ) confirm the presence of 57 turbines in Southaven and two others at an undisclosed location, all operating without federal permits.

xAI and Mississippi regulators have argued in court filings that the turbines are exempt from the federal Clean Air Act because they are considered "mobile" and intended for temporary use. However, civil rights groups, including the NAACP and the Southern Environmental Law Center, filed a lawsuit in April arguing the turbines produce emissions that require federal permits and are polluting nearby homes, schools, and churches.

Emissions and Community Impact

A Reuters analysis of manufacturer data for just 30 of the turbines found they could emit nearly 2,500 short tons of nitrogen oxide annually. This figure vastly exceeds the 100-ton threshold that triggers a mandatory federal permitting process under the Clean Air Act.

Ad

The off-grid power plant is situated near communities that are disproportionately Black and already experience higher-than-average rates of respiratory illness, according to a Reuters analysis of government data.

• In the five-mile radius around the site in DeSoto County, Mississippi, 46% of residents are Black, compared to 33% countywide.
• Across the state line in Shelby County, Tennessee, 94% of residents within five miles are Black, compared to 52% for the county.
• The analysis also found that estimated asthma and chronic obstructive pulmonary disease (COPD) rates were higher than countywide figures in most census tracts within five miles of the facility.

Broader Context and Legal Battle

The dispute highlights a growing conflict driven by the AI industry's immense electricity demand, which is pushing companies to build their own power sources at a pace that can outstrip environmental oversight. These off-grid projects often bypass the years of study and public hearings required for grid-connected power plants.

The lawsuit's outcome could set a precedent for how environmental laws apply to the rapidly expanding AI sector. The U.S. Justice Department intervened in the case in a June 15 filing, stating that restricting the turbines could threaten national security interests due to xAI's support for U.S. military operations.