The Colossus data center operated by xAI just outside Memphis is now at the center of a legal dispute over environmental violations. The Southern Environmental Law Center (SELC), representing the NAACP, has issued a notice of intent to sue xAI for installing and running a fleet of natural gas turbines without the necessary permits.
According to SELC, xAI has installed at least 35 combustion turbines and other pollution sources at the Colossus site over the past year—without securing the required preconstruction or operational air permits. This oversight is significant because these turbines could emit more than 2,000 tons of nitrogen oxides (NOx) annually, a major contributor to smog formation.
Memphis already struggles with poor air quality, and it was recently named an asthma capital of the nation. High emergency room visits and asthma-related deaths highlight the urgent need for cleaner air initiatives in the region.
SELC argues that xAI failed to obtain permits mandated by both federal and local regulators before installing the turbines. Furthermore, they allege that the company did not operate the turbines with proper pollution controls. At one point, xAI had enough turbines to generate 421 megawatts of electricity—raising concerns about unregulated emissions.
Last summer, the Shelby County Health Department indicated that xAI’s turbines were exempt from permitting. However, details about the basis of this exemption and what exactly was being operated remain unclear, according to SELC.
Efforts to assess the situation included aerial photography in March, which revealed that xAI had installed 35 turbines around the data center. Thermal imaging a month later showed that at least 33 of these turbines were operational. Subsequently, the Greater Memphis Chamber reported that some turbines had been removed, with plans to demobilize and remove the temporary turbines used during initial phases. The remaining turbines were intended to serve as backups until a new substation was completed to connect the site to the grid.
Despite these plans, a June 15 flight showed that at least 26 turbines were still in place, including three new installations since April. The total capacity was approximately 407 megawatts—just shy of previous levels—raising ongoing questions about compliance and environmental impact.
Environmental advocates emphasize that, under Tennessee law, new sources of air pollution are generally required to obtain preconstruction permits and operating approvals. The situation at the Colossus data center underscores the importance of strict regulation to protect regional air quality, especially in a city already facing serious health challenges linked to pollution.
