NAACP plans to sue Elon Musk's xAI over air pollution in Memphis
MEMPHIS, TN — The NAACP and an environmental group announced on June 17 that they plan to sue billionaire Elon Musk's artificial intelligence company, xAI, over concerns about air pollution from the startup's data center in Memphis.
The Southern Environmental Law Center (SELC) filed a 60-day intent to sue notice on behalf of the NAACP, alleging that xAI violated the Clean Air Act with its prolonged use of gas turbines at the company's Memphis facility. The lawsuit would be filed against X.AI Corp., and company affiliates CTC Property LLC and CTC Holding LLC.
In the lawsuit, the NAACP and SELC claim that xAI has not filed pre-construction or operating permits for the use of the gas turbines, resulting in several violations of the Clean Air Act. They claim these violations include constructing a major source of pollutants without obtaining a significant deterioration (PSD) permit. Operating without a PSD permit is a direct violation of the Clean Air Act.
Data centers that provide computing power for AI are highly power-intensive and require a constant supply of electricity. As data center computing demand continues to grow, they are increasingly responsible for higher carbon emissions, according to the Environmental and Energy Study Institute.
In June 2024, the Greater Memphis Chamber of Commerce announced that xAI planned to build a supercomputer facility in the city. Over the past year, xAI has doubled in size and has rapidly expanded its Memphis footprint.
“All too often, big corporations like xAI treat our communities and families like obstacles to be pushed aside," NAACP President Derrick Johnson said in a statement. "We cannot afford to normalize this kind of environmental injustice — where billion-dollar companies set up polluting operations in Black neighborhoods without any permits and think they’ll get away with it because the people don’t have the power to fight back. We will not allow xAI to get away with this."
Lawsuit: xAI turbines one of the largest 'industrial source of nitrogen oxides'
Several electrical and mechanical permits have been filed with the Memphis and Shelby County Division of Planning and Development, dating back to April 2024 regarding the xAI project; however, none were specific to turbine or stationary power sources.
The lawsuit also includes an August 2024 email from Shelby County Assistant Attorney John Marek to SELC staff, stating that "there are no construction or operating applications" for turbines at the xAI facility. The email was in response to a public records request from the SELC regarding turbine permitting.
Additionally, the lawsuit claims xAI has operated without the best safety protocols or best available control technology. Without a PSD permit, the lawsuit alleges, there is no use of selective catalytic reduction (SCR) technology to reduce emissions on the gas turbines. In March, Memphis Mayor Paul Young said xAI planned to equip SCR technology on existing equipment.
The lawsuit claims that, as of June 15, there were 26 operating gas turbines at the facility. Those 26 turbines are emitting 16 tons of hazardous air pollutants and more than 1,000 tons of nitrogen oxides, according to the lawsuit.
"xAI’s turbines are collectively one of the largest, or potentially the largest, industrial source of nitrogen oxides (NOx) in Shelby County," the lawsuit states.
In response to the 60-day notice to sue, the Greater Memphis Chamber of Commerce said it will not comment on pending litigation, adding that the organization remains "focused on our core mission of driving economic development and business growth throughout the Greater Memphis region."
An xAI spokesperson told the Memphis Commercial Appeal, part of the Paste BN Network, that the company takes "our commitment to the community and environment seriously."
"The temporary power generation units are operating in compliance with all applicable laws," the xAI spokesperson said in a statement.
xAI's permit request for turbines still pending
The Shelby County Health Department is still reviewing an operations permit for 15 natural gas turbines at the facility. The application calls for permanent 24/7 usage of the turbines at the site, though Bobby White, the chamber's chief government affairs officer, told The Commercial Appeal that xAI plans to use the 15 gas turbines for backup power.
The use of gas turbines at xAI has been a staunch subject of debate, including the number of turbines in use at the site. In April, the SELC claimed that xAI was using 35 natural gas turbines at the facility and was in violation of the Clean Air Act.
The county health department said there is an existing statute allowing the use of stationary gas turbines for up to 364 days before a permit is required.
In the lawsuit, the SELC argued that the turbines in use at the xAI facility do not meet the exemption guidelines and claims that the county health department is stretching the definition of the Clean Air Act's "nonroad engine exemption" for some portable combustion engines.
"There is no such exemption" SELC attorney Patrick Anderson said at a news conference on June 17. Anderson said that Young's office, the Greater Memphis Chamber of Commerce and the county health department could not confirm any citation or written language in regards to the 364-day exemption.
In a statement, the county health department said it would not comment on potential or pending litigation but provided additional context regarding the operating permit that is still under review for 15 gas turbines.
"The Shelby County Health Department is currently reviewing the air permit application submitted by xAI for a synthetic minor source under the state regulations and the Clean Air Act," according to the statement. "This review is being conducted in coordination with the U.S. Environmental Protection Agency’s (EPA) Region 4 office. Shelby County Health Department has been working closely with the EPA Region 4 office since xAI arrived in Shelby County."
Currently, a pair of 150-megawatt substations is planned to help power xAI's facility, and one of those is already completed. According to the lawsuit, the SELC and NAACP claim that xAI began using 16 gas turbines at the site on June 12, 2024, and in March, 35 gas turbines were at the xAI site, the highest total since operations began.
NAACP critical of xAI, local leaders
The decision for legal action comes after the NAACP called for the "immediate shutdown" of xAI's South Memphis facilities. On May 29, leaders from the Tennessee and Memphis chapters wrote a letter to Shelby County Health Department Director Michelle Taylor, criticizing both the health department and Memphis Light, Gas and Water (MLGW) over their handling of the xAI project.
On June 3, MLGW President and CEO Doug McGowen responded to the letter and called for an apology from NAACP leaders. McGowen asked for an apology, citing "misinformation and innuendo" in the NAACP letter.
Tensions around the xAI project have escalated with community leaders and stakeholders in Memphis who are concerned about both pollution and energy demands needed to power xAI's supercomputer.
Currently, xAI is operating, Colossus 1, at its 3231 Paul R. Lowry Road facility. The company is also constructing Colossus 2 at its 5420 Tulane Road campus in the Whitehaven neighborhood. Colossus 2 is expected to require at least 1 gigawatt of power.
Greater Memphis Chamber and xAI representatives have not responded to requests for comment regarding how the Tulane Road campus will be powered.
Group leads march in downtown Memphis to protest xAI
Following the NAACP's and SELC's announcement on June 17, about 100 people gathered at the National Civil Rights Museum in downtown Memphis before marching down Main Street in protest of xAI.
The march was organized by the local advocacy group Tigers Against Pollution. The group, which was originally called Tigers Against Musk, was started by a group of University of Memphis students.
Attendees rang cowbells and chanted "Hey, hey, ho, ho, xAI has got to go," as cars honked in support. Outside MLGW's downtown headquarters, the chants shifted into "Memphis Light, Gas and Water, no respect, no honor" and "Our city, our water."
Kenny Halt — a Flint, Michigan, transplant — works with Tigers Against Pollution on its social media and went to the protest. He said he sees similarities with the water crisis in Flint.
Halt said he feels the momentum behind folks speaking out against xAI began at the public hearing at Fairley High School over xAI's request to permanently use 15 natural gas turbines at its 3231 Paul R. Lowry Road facility. "It was such a powerful thing to see that many people (speak up)," he said.
Journee Jenkins, 19, came out to the march after attending the "No Kings" protest on June 14. Jenkins, who has chronic asthma, said she's had migraine episodes more frequently over the last several months. For her, air pollution is the largest concern with xAI.
"I have friends who live down there (South Memphis) who say they feel dizzy every day," she said.
Contributing: Thao Nguyen, Paste BN; Reuters