New updates have been reported about xAI (PC:XAIIQ)
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xAI, Elon Musk’s artificial intelligence company, has received approval from county regulators to operate 15 natural gas turbines at its Memphis data center, despite facing potential legal action. The Southern Environmental Law Center (SELC) has threatened to sue xAI for Clean Air Act violations, alleging the company has been running up to 35 generators without proper permits, capable of producing 421 megawatts of electricity. The recent permit allows xAI to operate 15 Solar SMT-130 generators, equipped with emissions controls, generating up to 247 megawatts. However, the SELC claims that eight of these generators were already in operation without permits, albeit with necessary pollution controls in place.
The permit conditions permit xAI to emit substantial pollution annually, including significant amounts of NOx, carbon monoxide, volatile organic compounds, particulate pollution, and hazardous air pollutants like formaldehyde. xAI is required to maintain its emissions records. The issuance of the permit follows a controversial air quality testing process by the City of Memphis, which the SELC criticized for methodological flaws, such as not measuring ozone levels and conducting tests under conditions that may not accurately reflect the pollution impact. A local community group has allocated $250,000 for an independent air quality study. Previously, the health department had refrained from permitting mobile turbines, citing EPA jurisdiction, a stance the SELC challenged as legally unfounded. xAI’s recent $10 billion fundraising, split between debt and equity, underscores its strategic growth amid these regulatory challenges.