Elon Musk’s xAI Faces Legal Challenge Over Data Center Pollution

xAI and its subsidiary MZX Tech face a lawsuit over emissions from natural gas turbines at Mississippi data centers, raising health and environmental concerns.

By Maria Konash Published: Updated:

Elon Musk’s xAI, recently merged with SpaceX, is facing potential legal action over emissions from data centers in Southaven, Mississippi. Environmental and civil rights groups, represented by the Southern Environmental Law Center and Earthjustice on behalf of the NAACP, filed a notice of intent to sue xAI and its subsidiary MZX Tech LLC, citing violations of the Clean Air Act.

The case highlights concerns over natural gas-fired turbines, which residents in Memphis and Southaven report contribute to air and noise pollution. Scientific studies by the University of Tennessee confirm emissions from these turbines impact local air quality and public health. Previous attempts to classify the turbines as temporary installations were invalidated by the Environmental Protection Agency, but the turbines continue to operate without federal permits.

xAI has positioned Memphis as a hub for its generative AI ambitions, competing with companies like OpenAI and Google. Expansion plans include 41 permanent turbines in Southaven, prompting public hearings and community pushback. The legal challenge underscores tensions between tech companies’ rapid infrastructure growth and compliance with environmental regulations, a trend reflected in opposition to Microsoft and Amazon data center projects elsewhere.

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