XAI Built Makeshift Gas Power Plant for AI Supercomputer Colossus Without Asking

XAI has more than doubled the number of mobile gas turbines at its Colossus supercomputer site in Memphis, apparently violating permits to generate power at the site, Datacenter Dynamics reports. The extra turbines were spotted in aerial photographs of the area, now numbering 35 instead of the 15 originally permitted. They have an estimated combined capacity of 422 megawatts, compared to 425 megawatts at a nearby conventional gas-fired power plant.

Environmentalists from the Southern Environmental Law Center (SELC) say this is a direct violation of the Clean Air Act. According to SELC lawyers, this is essentially the construction of an xAI power plant without supervision, without permits, and without taking into account the interests of local residents. Dozens of gas turbines, they say, are harming the environment. Environmental activists expect local authorities to immediately take action to hold xAI accountable.

Image source: xAI

SLRC and other groups have already filed a complaint with the Shelby County Health Department (SCHD), arguing that the turbines likely make xAI the largest industrial source of nitrogen oxides in Memphis, which has long struggled with smog. At a county committee meeting, residents expressed their disapproval of the project and demanded a closer look at the impacts on the community. The local council urged the SCHD to hold a public meeting to gather input from residents who could be harmed by the turbines. The SCHD has committed to holding a public hearing on the issue on April 25.

Image source: xAI

SELC had previously approached the Shelby Health Department about the placement of gas turbines at the site. In August 2024, the group said xAI had likely installed 18 gas generators without a permit, creating unnecessary health risks for nearby residents. Colossus began operating in July. At that time, local utility TVA had allocated only 8 megawatts of power to the site; by the end of the year, the supply had increased to 150 megawatts. The data center had relied on gas generators throughout this time.

The data center is used to train and operate the company’s chatbot, Grok. The center is located in a tech park in southwest Memphis. Last year, xAI founder Elon Musk announced that the data center’s capacity would be doubled and the facility was in the process of installing another 100,000 NVIDIA accelerators. Over time, the plan is to deploy 1 million accelerators. In February, the company was reportedly considering building another data center.