Musk's xAI is being sued over its data center generators. Now, it's buying $2.8B more. | TechCrunch

xAI is facing legal action over operating unregulated gas turbines at a data center near Memphis, Tennessee, where air quality is already poor. The NAACP sued to stop the turbines, seeking an injunction, and reported that xAI had permits for 15 turbines while using 46. The turbines can emit more than 2,000 tons of NOx pollution annually, contributing to asthma-inducing smog. xAI claims it can run mobile turbines without permits because they remain on trailers, relying on differences between state and federal interpretations. Federal rules and an EPA ruling indicate the turbines are still subject to air-pollution regulations. SpaceX’s IPO filing states it relies on natural gas and gas turbine technology and warns that injunctions or rescinded permits would harm its AI business.

"The NAACP filed a lawsuit against xAI last month for operating dozens of unregulated gas turbines that worsen air quality in one of the most polluted parts of the country. The organization has sought an injunction against xAI's use of the turbines. So far, xAI has been granted permits for 15 turbines. As of a few weeks ago, it was using 46."

"Each of the types of turbines xAI is operating have the potential to emit more than 2,000 tons of NO x pollution annually, a group of chemicals that contributes to asthma-inducing smog. The company claims that it can operate the turbines for up to a year without permits because they are "mobile" - that is, they're still on the trailer they were shipped on."

"The company appears to be exploiting a discrepancy between state and federal interpretations. Mississippi claims it doesn't need to permit mobile generators. But federal regulations say that turbines of that size, even if they're on a trailer, are still subject to air-pollution regulations. The EPA ruled earlier this year that xAI was operating the turbines in violation of federal law."

"In SpaceX's IPO filing, released Wednesday, the company said its xAI division will buy another $2.8 billion worth of turbines for its AI infrastructure over the next three years. One deal, worth $2 billion, is specifically for "mobile gas turbines," the kind that it's currently being sued over. SpaceX acknowledges the risks in its IPO filing."

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