The xAI data center began operating last year, powered in part by pollution-emitting gas turbines, without first applying for a permit. Officials have said an exemption allowed them to operate for up to 364 days without a permit, but Southern Environmental Law Center attorney Patrick Anderson said at a news conference that there is no such exemption for turbines — and that regardless, it has now been more than 364 days.

A 60-day notice of an intent to sue, a prerequisite to filing a lawsuit under the Clean Air Act, was sent to xAI in a letter. The SELC is representing the NAACP in its possible legal challenge against xAI and its permit application, now being considered by the Shelby County Health Department.

The xAI company responds

The company said Tuesday that it takes its commitment to the community and environment seriously.

“The temporary power generation units are operating in compliance with all applicable laws,” an xAI statement said.

Musk’s xAI has said the turbines will be equipped with technology to reduce emissions — and that it’s already boosting the city’s economy by investing billions of dollars in the supercomputer facility, paying millions in local taxes and creating hundreds of jobs. The company also is spending $35 million to build a power substation and $80 million to build a water recycling plant to the support Memphis, Light, Gas and Water, the local utility.

The chamber of commerce in Memphis made a surprise announcement in June 2024 that xAI planned to build a supercomputer in the city. The data center quickly set up shop in an industrial park south Memphis, near factories and a gas-powered plant operated by the Tennessee Valley Authority.

What opponents are saying

Opponents say the supercomputing center is stressing the power grid. They contend that the turbines emit smog and carbon dioxide, pollutants that cause lung irritation such as nitrogen oxides and the carcinogen formaldehyde.

The SELC said the use of the turbines violates the Clean Air Act, and that residents who live near the xAI facility already face cancer risks at four times the national average. The group also has sent a petition to the Environmental Protection Agency.

Critics say xAI installed the turbines without any oversight or notice to the community. The company requests to operate 15 turbines at the site, but the SELC said it hired a firm to fly over the facility and found up to 35 turbines operating there at times.

The permit itself says emissions from the site “will be an area source for hazardous air pollutants.” A permit would allow the health department, which has received 1,700 public comments about the permit, to monitor air quality near the facility.

A contentious public meeting

Opponents of the facility say city leaders have not been transparent with the community about their dealings with xAI, and they are sacrificing the health of residents in return for financial benefit.

At a community meeting hosted by the county health department in April, many of the people speaking in opposition cited the additional pollution burden in a city that already received an “F” grade for ozone pollution from the American Lung Association.

A statement read by xAI’s Brent Mayo at the meeting said the company wants to “strengthen the fabric of the community,” and estimated that tax revenues from the data center are likely to exceed $100 million by next year.

“This tax revenue will support vital programs like public safety, health and human services, education, firefighters, police, parks and so much more,” said the statement.

The company also apparently wants to expand: The chamber of commerce said in March that xAI had purchased a 1 million square-foot property at a second location, not far from the current facility.

The mayor of Memphis weighs in

Mayor Paul Young said In his weekly newsletter Friday that an ordinance now requires that 25% of xAI’s city property tax revenue be reinvested directly into neighborhoods within 5 miles of the facility.

Young also said that no tax incentives or public dollars are tied to the project.

“Let’s be clear, this isn’t a debate between the environment and economics,” Young said. “It’s about putting people before politics. It’s about building something better for communities that have waited far too long for real investment.”

Boxtown punches back

One nearby neighborhood dealing with decades of industrial pollution is Boxtown, a tight-knit community founded by freed slaves in the 1860s. It was named Boxtown after residents used material dumped from railroad boxcars to fortify their homes. The area features houses, wooded areas and wetlands, and its inhabitants are mostly working class residents.

Boxtown won a victory in 2021 against two corporations that sought to build an oil pipeline through the area. Valero and Plains All American Pipeline canceled the project after protests by residents and activists led by State Rep. Justin J. Pearson, who called it a potential danger to the community and an aquifer that provides clean drinking water to Memphis.

Pearson, who represents nearby neighborhoods, said “clean air is a human right” as he called for people in Memphis to unite against xAI.

“There is not a person, no matter how wealthy or how powerful, that can deny the fact that everybody has a right to breathe clean air,” said Pearson, who compared the fight against xAI to David and Goliath.

“We’re all right to be David, because we know how the story ends,” he said.