xAI Faces Lawsuit Over Air Pollution Concerns in Memphis

Elon Musk's artificial intelligence company, xAI, has been the subject of controversy in Memphis due to the operation of a supercomputer facility that residents claim is polluting the air and harming their health. The facility, which began operating last year, is powered in part by gas turbines that emit pollutants. The NAACP and an environmental group have announced their intention to sue xAI over concerns about air pollution, citing the lack of a permit for the turbines and the potential health risks to nearby communities.

The xAI data center is located in an industrial park in south Memphis, near factories and a gas-powered plant. The company has stated that the turbines are equipped with technology to reduce emissions and that the facility is boosting the city's economy by investing billions of dollars, paying millions in local taxes, and creating hundreds of jobs. Additionally, xAI is spending $35 million to build a power substation and $80 million to build a water recycling plant to support the local utility.

Opponents of the facility argue that the turbines emit harmful pollutants such as smog, carbon dioxide, nitrogen oxides, and formaldehyde, which can cause lung irritation and other health issues. The Southern Environmental Law Center (SELC) has sent a 60-day notice of intent to sue xAI, alleging that the use of the turbines violates the Clean Air Act. The SELC also claims that residents near the facility already face cancer risks at four times the national average and has sent a petition to the Environmental Protection Agency.

Critics have also accused xAI of installing the turbines without proper oversight or notice to the community. The company has requested to operate 15 turbines at the site, but the SELC found up to 35 turbines operating there at times. The permit for the facility acknowledges that emissions from the site will be an area source for hazardous air pollutants, and a permit would allow the health department to monitor air quality near the facility.

At a community meeting hosted by the county health department, many residents expressed concerns about the additional pollution burden in a city that already has poor air quality. xAI's representative, Brent Mayo, stated that the company wants to strengthen the community and that tax revenues from the data center are likely to exceed $100 million by next year. The company also plans to expand, having purchased a 1 million square-foot property at a second location near the current facility.

Mayor Paul Young has stated that an ordinance now requires that 25% of xAI’s city property tax revenue be reinvested directly into neighborhoods within 5 miles of the facility. He also emphasized that no tax incentives or public dollars are tied to the project, and that the debate is about putting people before politics and building something better for communities that have waited far too long for real investment.

One nearby neighborhood, Boxtown, has a history of dealing with industrial pollution. Founded by freed slaves in the 1860s, Boxtown won a victory in 2021 against two corporations that sought to build an oil pipeline through the area. State Rep. Justin J. Pearson, who represents nearby neighborhoods, has called for people in Memphis to unite against xAI, stating that clean air is a human right and comparing the fight against xAI to David and Goliath.