Musk's xAI scores permit for gas-burning turbines to power Grok supercomputer in Memphis
Key Takeaways
Elon Musk's artificial intelligence startup attained an official permit to power its Memphis supercomputer facility using natural gas-burning turbines.
Article Overview
Quick insights and key information
4 min read
Estimated completion
financial news
Article classification
July 3, 2025
10:07 PM
CNBC
Original publisher
Elon Musk's xAI attained a permit to power its supercomputer facility in Memphis, Tennessee, using natural gas-burning turbines, according to public records d on Wednesday
The Shelby County Health Department issued the permits on July 2, despite months of tests and public hearings where local residents decried the turbines' impact on local air quality
Earlier this week, xAI raised a combined $10 billion in debt and equity, Morgan Stanley said
The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024
Jonathan Raa | Nurphoto | Getty ImagesElon Musk's xAI attained an official permit to power its supercomputer facility in Memphis, Tennessee, using natural gas-burning turbines, according to public records d by the company on Wednesday
The Shelby County Health Department issued the permits on July 2, despite months of tests and public hearings where local residents decried the turbines' impact on local air quality
Musk's artificial intelligence startup, which now owns his social media site X, will face formal emissions limits, testing requirements and deadlines in order to keep operating 15 turbines at the facility
The permit says non-compliance with requirements could result in daily fines of up to $10,000 per violation
People who near the Colossus supercomputer in Memphis have said that after xAI fired up the turbines, they experienced poor air quality in the area and found it nearly impossible to keep windows open or exercise outdoors due to the stench
The turbines emit nitrogen oxides and formaldehyde, among other pollutants, according to spec sheets on the website of the installer, Solaris Energy Infrastructure, based in Houston
SEI itself as a "power-as-a-service vider," able to der quick deployment of portable, natural gas generators at data centers and other facilities with immediate and significant power demands
Exposure to high levels of nitrogen oxides, which are precursors to ozone formation, have been associated with higher risk of death from respiratory disease
The permit was issued a day after the local health department named Bruce Randolph interim director and health officer
It also landed as xAI faces a pending lawsuit from the NAACP, which says Musk's company has violated the Clean Air Act with its use of the turbines
The Southern Environmental Law Center, which is representing the NAACP, said in a statement to CNBC that a satellite image from July 1, showed "at least 24 turbines still at the xAI site, more than the 15 allowed by this newly published permit. " The firm previously spotted 35 turbines installed at the facility, with more than 15 operating at a time
In a statement to CNBC on Wednesday, xAI said it welcomed the decision by Shelby County, adding that, "Our onsite power generation will be equipped with state-of-the-art emissions control nology, making this facility the lowest emitting of its kind in the country. "After buying X earlier this year in a deal that xAI said valued the combined company at $80 billion, Musk's startup is seeking to build an even larger datacenter near Colossus, with SEI viding the turbines
This week the company raised a combined $10 billion in debt and equity, according to Morgan Stanley, which led part of the financing
XAI is aiming to develop ducts that compete with Google's Gemini, Open AI's ChatGPT and other AI systems
The company's Grok chatbot, powered by the Memphis supercomputer, is integrated into X
Musk's other companies are benefitting from xAI's Memphis buildout
According to financial filings from Tesla, xAI spent "apximately $191. 0 million during 2024 and $36. 8 million through February 2025" on purchases of the company's Megapack ducts, which are giant backup batteries or battery energy storage systems
WATCH: Musk says he has no plans to merge Tesla and xAIwatch now2:3502:35Tesla CEO Elon Musk: No plans to merge Tesla and xAIClosing Bell: OvertimeIlya Sutskever becomes CEO of Safe Superintelligence after Meta poached Daniel GrossAshley CapootMark Zuckerberg announces creation of Meta Superintelligence Labs
Read the memoJonathan VanianNvidia s hit record as AI chipmaker again becomes world's most valuable companyKif LeswingRead More.
Related Articles
More insights from FinancialBooklet