Elon Musk's xAI Sued Over Generators
xAI, founded by Elon Musk, has faced issues due to the use of polluting generators at a data center near Memphis, Tennessee. Despite this, the company plans to purchase even more of these units. According to SpaceX IPO filings, the xAI division will spend another $2.8 billion on turbines for AI infrastructure over the next three years. This is reported by Techcrunch.com reports.
Of this deal, $2 billion is allocated specifically for the "mobile gas turbines" currently at the center of the lawsuit. Last month, the NAACP filed a lawsuit against xAI, accusing the company of operating dozens of unregulated gas turbines that degrade air quality in one of the country's most polluted areas. The organization is seeking a court order to ban the use of these turbines.
To date, xAI has only received permits for 15 turbines, but reports from a few weeks ago indicate the company is operating 46 units. Each turbine of this type is capable of emitting over 2,000 tons of NOx (nitrogen oxides) per year, contributing to the formation of smog that can trigger asthma.
The company claims that because these turbines are "mobile"—meaning they are still on the trailers they were delivered on—they can be operated for up to a year without a permit. xAI appears to be attempting to exploit a gap between state and federal laws. While Mississippi states that mobile generators do not require a permit, federal regulations emphasize that turbines of this size must comply with air pollution rules even if they are on trailers.
Earlier this year, the EPA (Environmental Protection Agency) ruled that xAI was operating the turbines in violation of federal law. SpaceX acknowledged these risks in its IPO filings: "We currently rely significantly on natural gas and gas turbine technology to power our data center operations. Court injunctions or the revocation of permits could have a negative impact on our AI business."
