Elon Musk’s xAI permits challenged by NAACP, environmental groups in Memphis
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Environmental groups in Memphis filed a permit appeal to stop xAI from using gas-burning turbines to power its supercomputer facility in the area.
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4 min read
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investment
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July 17, 2025
05:44 AM
CNBC
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What caught my attention is The NAACP and environmental groups in Memphis filed a permit appeal to stop xAI from using gas-burning turbines to power its supercomputer facility in the area
Furthermore, Elon Musk's AI startup has been running the turbines for months to power its Colossus supercomputer in Memphis, and previously claimed it didn't need permits, in light of current trends
The environmental groups say xAI's gas-burning turbines are worsening air pollution and impacting residents' health in majority-Black communities in Memphis, given the current landscape
Elon Musk announced his new company xAI which he says has the goal to understand the true nature of the universe, in today's market environment
Jaap Arriens | Nurphoto | Getty ImagesOpposition to xAI's supercomputer facility in Memphis, Tennessee, intensified on Wednesday after environmental and civil rights groups filed to appeal a permit that allows the company to run natural gas-burning turbines to power its massive data center, considering recent developments
When xAI, which is run by Elon Musk, first set up in Memphis last year, the artificial intelligence startup said the turbines it installed initially were temporary and too small to require permits
The company categorized them as "nonroad engine" style generators
Residents living near the facility complained for months that emissions from the turbines were creating a stench, worsening air pollution in Memphis, and disportionately impacting people in nearby majority-Black communities
Still, the Shelby County Health Department issued a permit on July 2, allowing xAI to use up to 15 of the turbines, in this volatile climate
Additionally, This analysis suggests that department agreed that the turbines were small enough to be considered nonroad engines (this bears monitoring), amid market uncertainty
In the appeal, dated July 15, the Southern Environmental Law Center (SELC), which is representing the NAACP, and an environmental group called Young, Gifted & Green claim that the county's health department had ignored residents' concerns
Additionally, The SELC also argued that the health department miscategorized the turbines used by xAI and issued the permits imperly, a violation of the Clean Air Act and some local environmental regulations
On the other hand, NAACP CEO Derrick Johnson said in a statement that, "Our health shouldn't be threatened at the hands of billionaires who circumvent the law. "The gas-burning turbines emit nitrogen oxides and formaldehyde, among other pollutants, according to spec sheets on the website of Solaris Energy Infrastructure, xAI's partner and installer
Moreover, Exposure to high levels of nitrogen oxides, which are precursors to ozone formation, have been associated with higher risk of death from respiratory disease
Moreover, At the same time, In a statement to CNBC on Wednesday evening, xAI said it was "disheartened (but not surprised)" to see the SELC's appeal
Furthermore, The company accused the firm of making a "baseless, politically driven appeal," and said it has "and will continue to comply with all federal, state and local laws. "Environmental concerns aren't the only controversy facing xAI as the company tries to challenge OpenAI, Google, Meta and others in large AI models and services on top of them, amid market uncertainty
Additionally, Grok, xAI's chatbot, recently began to generate and spread antisemitic posts across X, including some that praised Hitler
This leads to the conclusion that company apologized days later for making code that caused Grok to spit out the offensive content
However, Additionally, Recently, xAI also launched a new Grok feature allowing users to access "AI companions. " In tests by NBC News, some of the companions pressured Grok users into sexually explicit or violent conversations
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