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Home » Musk’s xAI faces lawsuit over data center generators, now buying $2.8 billion more
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Musk’s xAI faces lawsuit over data center generators, now buying $2.8 billion more

Editor-In-ChiefBy Editor-In-ChiefMay 20, 2026No Comments2 Mins Read
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Elon Musk’s xAI is in trouble for using polluting generators at its data center near Memphis, Tennessee. Now I want to buy more products.

In SpaceX’s IPO filing released Wednesday, the company said its xAI division will buy an additional $2.8 billion worth of turbines for its AI infrastructure over the next three years. One of the deals, valued at $2 billion, is specifically for “mobile gas turbines” of the type currently being sued.

The NAACP filed a lawsuit last month against xAI, accusing it of operating dozens of unregulated gas turbines that degrade air quality in one of the nation’s most polluted regions. The organization is seeking an injunction against xAI’s use of the turbines. To date, xAI has received permits for 15 turbines. As of a few weeks ago, I was using 46.

Each type of turbine operated by xAI can emit more than 2,000 tons of NOx pollution, the chemical that causes asthma-inducing smog, annually.

The company claims the turbines are “mobile,” meaning they remain on a trailer when shipped, so they can be operated for up to a year without a permit. The company appears to be taking advantage of differences in state and federal interpretations. Mississippi claims it doesn’t need to permit mobile generators.

But according to federal regulations, a turbine of that size is still subject to air pollution regulations even when mounted on a trailer. The EPA ruled earlier this year that xAI was operating its turbines in violation of federal law.

SpaceX acknowledges risks in its IPO filing. “We currently rely heavily on natural gas and gas turbine technology to power our data center operations,” the magazine said. Revocation of an injunction or permit “could have an adverse impact on our AI business.”

If you buy through links in our articles, we may earn a small commission. This does not affect editorial independence.



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