Musk’s xAI is being sued over its data center generators — now it’s buying $2.8B more
Source: TechCrunch
Background
Elon Musk’s xAI is facing criticism for its use of polluting generators at its data‑center near Memphis, Tennessee. The company plans to purchase additional turbines for its AI infrastructure.
Planned Purchases
In SpaceX’s IPO filing released Wednesday, the company disclosed that its xAI division will buy another $2.8 billion worth of turbines over the next three years. One deal, valued at $2 billion, is specifically for “mobile gas turbines,” the same type that is currently the subject of a lawsuit.
Legal Action
The NAACP filed a lawsuit last month alleging that xAI is operating dozens of unregulated gas turbines that worsen air quality in one of the most polluted parts of the country. The suit seeks an injunction against the use of the turbines.
- xAI has been granted permits for 15 turbines, but as of a few weeks ago it was using 46.
- Each turbine type has the potential to emit more than 2,000 tons of NOx pollution annually, a chemical that contributes to asthma‑inducing smog.
Regulatory Context
xAI claims it can operate the turbines for up to a year without permits because they are “mobile” – still on the trailer they were shipped on. Mississippi state law does not require permits for mobile generators, but federal regulations state that turbines of this size are subject to air‑pollution rules even when on a trailer. The EPA ruled earlier this year that xAI was operating the turbines in violation of federal law.
Company Statement
SpaceX acknowledges the reliance on natural‑gas and gas‑turbine technology in its IPO filing:
“We currently rely significantly on natural gas and gas turbine technology to power our data center operations. Injunctions or rescinded permits would adversely affect our AI business.”