Despite Protests, Elon Musk Secures Air Permit for xAI

A local health department in Memphis has granted Elon Musk’s xAI data center an air permit to continue operating the gas turbines that power the company’s Grok chatbot. The permit comes amid widespread community opposition and a looming lawsuit alleging the company violated the Clean Air Act.

The Shelby County Health Department released its air permit for the xAI project Wednesday, after receiving hundreds of public comments. The news was first reported by the Daily Memphian.

In June, the Memphis Chamber of Commerce announced that xAI had chosen a site in Memphis to build its new supercomputer. The company’s website boasts that it was able to build the supercomputer, Colossus, in just 122 days. That speed was due in part to the mobile gas turbines the company quickly began installing at the campus, the site of a former manufacturing facility.

Colossus allowed xAI to quickly catch up to rivals OpenAI, Google, and Anthropic in building cutting-edge artificial intelligence. It was built using 100,000 Nvidia H100 GPUs, making it likely the world’s largest supercomputer.

xAI’s Memphis campus is located in a predominantly Black community known as Boxtown which has been historically burdened with industrial projects that cause pollution. Gas turbines like the ones xAI is using in Memphis can be a significant source of harmful emissions, like nitrogen oxides, which create smog. Memphis already has some of the highest child asthma rates in Tennessee. Since xAI began running its turbines, residents have repeatedly met and rallied against the project.

“My neighbors and I are forced to breathe the pollution this company pumps into our air every day. We smell it. We inhale it. This isn’t just an environmental issue — it’s a public health emergency,” wrote State Rep. Justin Pearson, who grew up near Boxtown, in an MSNBC op-ed last week.

Under the Clean Air Act, “major” sources of emissions—like a cluster of gas turbines—need a permit, known as a Prevention of Significant Deterioration (PSD) permit. However, Shelby County Health Department officials told local reporters in August that this wasn’t necessary for xAI since its turbines weren’t designed to be permanent. Amid mounting local opposition, xAI finally applied for a permit with the Shelby County Health Department in January, months after it first began running the turbines.

Last month, the NAACP and the Southern Environmental Law Center (SELC) announced that they intended to sue xAI for violating the Clean Air Act.

“xAI’s decision to install and operate dozens of polluting gas turbines without any permits or public oversight is a clear violation of the Clean Air Act,” said senior SELC attorney Patrick Anderson in a press release. “Over the last year, these turbines have pumped out pollution that threatens the health of Memphis families. This notice paves the way for a lawsuit that can hold xAI accountable for its unlawful refusal to get permits for its gas turbines.”