xAI is facing a lawsuit over its Memphis data center operating unpermitted natural gas turbines.
The Southern Environmental Law Center (SELC) warned xAI it ran at least 35 combustion turbines without required preconstruction or operating air permits. The letter signals a Clean Air Act lawsuit filed on behalf of the NAACP if the issue isn’t resolved in 60 days.
The turbines at xAI’s Colossus site can emit over 2,000 tons of nitrogen oxides (NOx) annually—chemicals linked to worsening smog and asthma. Memphis already has poor air quality and high asthma rates, with the city recently named an asthma capital of the U.S. 
SELC says xAI never got local or federal permits before installing and running these turbines. The site once had enough gas turbines to generate 421 megawatts.
Last summer, the Shelby County Health Department claimed the turbines were exempt from permits but didn’t publicly explain why or detail the operations.
SELC hired an aerial photographer in March, capturing images showing 35 turbines around the data center. Thermal imaging in April found at least 33 turbines were running.
Following the photos, a local economic group said xAI removed some turbines.
“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months,” the Memphis Chamber said.
“About half of the operating turbines will remain” until a new substation finishes, then the turbines will be used as backups.
But a mid-June flight spotted at least 26 turbines still on site, including three new ones. The total capacity remained roughly 407 megawatts—just under the previous count.
SELC added:
“With very few exceptions — none of which apply here — new sources of criteria and other air pollutants in Tennessee must obtain preconstruction approval in the form of an air permit as well as a permit to operate and emit pollutants.”
xAI has not publicly commented on the permit violations or lawsuit notice. The case shines a light on the environmental challenges of power-hungry AI data centers.
