Elon Musk’s artificial intelligence company, xAI, is facing growing resistance from Memphis residents and environmental groups over its rapidly expanding data center operations. Residents report that the company installed numerous methane-powered turbines without securing necessary air permits.
The action has prompted worries about pollution in southwest Memphis. Industries heavily populate this area, which has a historically Black community suffering from elevated cancer and asthma rates.
What is xAI building in Memphis?
Musk’s company launched its flagship AI supercomputing facility, dubbed “Colossus,” in a repurposed factory near the Boxtown neighborhood in 2024. Musk described the site as the world’s most powerful AI training system. The company quickly expanded, purchasing a second nearby property earlier this year and planning a facility reportedly over 1 million square feet in size.
To power these operations, xAI drew 150 megawatts from the Memphis public utility grid to supply roughly 100,000 homes and installed dozens of portable gas turbines. According to environmental groups, thermal imaging confirmed 33 of 35 turbines appeared active as of April.
xAI later applied for air permits for 15 turbines, which remain under review. Officials said the company removed or stored the remaining units, though community concerns persist.
According to an interview with Fortune Super Micro CEO Charles Liang, xAI’s Colossus facility in Memphis was built in just 122 days and houses 100,000 Nvidia H100 GPUs, making it one of the largest AI compute clusters in operation.
How are residents responding to xAI’s expansion?
Residents and advocacy groups say xAI sidestepped public transparency and environmental regulation. The Shelby County Health Department reported receiving more than 1,700 public comments, prompting a 60-day review of the company’s permit application. Local activists packed an April hearing to demand accountability.
“We are being shackled to this pollution and these fossil fuels yet again,” said KeShaun Pearson, director of Memphis Community Against Pollution, according to the Tennessee Tribune. He said the community is tired of waiting for clean air and energy, and added, “We should not allow this to be normalized.”
Memphis officials, including Mayor Paul Young, have backed xAI, citing the potential for hundreds of jobs and millions in tax revenue. However, residents say that few high-paying tech jobs have gone to locals and have questioned whether economic gains can justify environmental risks.
xAI has not publicly responded to most of the environmental or regulatory allegations, despite repeated requests for comment.
What pollutants are at stake?
According to turbine manufacturer guidelines cited by the Southern Environmental Law Center, the gas-powered turbines installed by xAI emit nitrogen oxides, formaldehyde and fine particulate matter — pollutants linked to asthma, lung damage and cancer.
The American Lung Association and the EPA have classified these emissions as hazardous to human health. Tennessee state health data shows that Shelby County has the highest childhood asthma hospitalization rate in the state.
The Southern Environmental Law Center argues that xAI’s operations, due to their size and emissions volume, fall outside what the group says is a misused federal exemption for temporary turbines. The group has raised concerns that xAI operates without legally required pollution controls.
How is the federal government responding?
Federal oversight appears limited. Under the Trump administration, the Environmental Protection Agency (EPA) has weakened or eliminated more than a dozen pollution rules and shut down environmental justice programs. EPA Administrator Lee Zeldin has also suggested revising air quality standards that critics say protect vulnerable communities.
Some lawmakers have expressed alarm. State Rep. Justin Pearson, who lives near the site, said he was unaware of the facility until the turbines appeared.
“Something has failed drastically and significantly with our system of checks and balances,” said state Rep. Pearson in an interview with CNN.
As xAI looks for further expansion and federal regulations recede, residents in southwest Memphis say they will continue to fight for clean air and transparency.
“We deserve to breathe clean air,” Boxtown resident Sarah Gladney told CNN. “It seems like we are constantly at battle.”
