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Environmental Groups Accuse Elon Musk's xAI of 'Gross Neglect' in Memphis

As xAI looks to expand the facility to run 1 million Nvidia GPUs, local groups say it has 'essentially built a power plant in South Memphis' with no oversight, exacerbating the city's smog problem.

 & Michael Kan Principal Reporter

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As Elon Musk's xAI supercomputer expands in Memphis, Tennessee, the company is facing accusations that its facility is polluting the local air. 

A coalition of environmental groups claims xAI’s supercomputing facility violates the Clean Air Act after the company "nearly doubled the number of on-site gas turbines."

The groups, including the Southern Environmental Law Center, point to recent photos that show the facility "using 35 methane gas turbines —far more than previously known and more than the company has submitted permit applications for."

(Credit: Southern Environmental Law Center)
(Credit: Southern Environmental Law Center)

"XAI has essentially built a power plant in South Memphis with no oversight, no permitting, and no regard for families living in nearby communities,” says Southern Environmental Law Center Senior Attorney Amanda Garcia. 

The environmental groups sent a letter to the Shelby County Health Department, demanding the local government intervene and force xAI to stop using the gas turbines.

"Manufacturer-supplied emissions data for these turbines shows that xAI emits between 1,200 and 2,000 tons of smog-forming nitrogen oxides (NOx) per year, making the facility likely the largest industrial emitter of NOx in Memphis," the letter says.

“That Elon Musk is being allowed to add such a massive power demand and put the burden of the resulting air pollution on the lungs of the people of Memphis is gross, and gross neglect on the part of local leaders and officials,” says Sierra Club Tennessee Conservation Director Scott Banbury.

Musk's xAI didn’t immediately respond to a request for comment. But the letter comes as the company plans to expand the facility to run 1 million Nvidia enterprise-grade GPUs, up from 200,000. The computing power promises to help xAI improve its Grok chatbot and develop other generative AI tech, even to create video games. But it also means xAI’s supercomputer in Memphis needs to consume more electricity, raising concerns about the environmental impact. 

The Guardian adds that xAI appears to be using a regulatory loophole that lets it deploy the gas turbines in one location for up to 364 days. However, it applied for permits to use 15 generators, not 35. None of those permits have been granted so far, The Guardian reports.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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