Elon Musk's Colossus 2 xAI data center, which runs independently of the power grid through on-site natural gas turbines, is said to be releasing thousands of tons of nitrogen oxide and carbon monoxide every year. According to Reuters, the company has installed 59 temporary, mobile natural gas turbines without permission, and these unpermitted portable units mostly heavily affect the communities surrounding the site, which happen to be predominantly black and are already suffering disproportionately high lung disease rates. xAI has claimed that it’s running 27 turbines without any permits, saying that it’s exempted because of their temporary nature.
Elon Musk’s alleged use of illegal turbines isn’t a new issue, with the community discovering that it’s been using over 30 gas turbines on the site, despite only having an ongoing application for 15 in July 2025. The company said that these turbines are exempted from the permitting process, as they are not permanent installations and will be moved within 364 days. The Environmental Protection Agency (EPA) issued a ruling earlier this year that removed all exceptions, but told Reuters that “it’s considering changes allowing ‘regulatory flexibilities’ for portable units while continuing to protect public health.”
The Colossus data centers were put up in record time, and Musk had to bring his own energy sources to achieve this. That’s because connecting to the grid could take years, especially if the grid must be upgraded to deliver his 1-GW capacity target. However, the Clean Air Act permitting process could take a similarly long time, with the report suggesting xAI bypassed it completely just to achieve its goal. Adding to the complexity, while the data center is located in Tennessee, Reuters reports that "at least" 57 of the 59 turbines are actually located just over the state line in Mississippi, which issued a permit for 41 permanent turbines in March. xAI and Mississippi environmental regulators claim the turbines are mobile and therefore don't need permits, but they also aren't covered by the permit for 41 permanent turbines.
This did not sit well with the communities surrounding the data centers, especially Colossus 2, which sat near the border of Tennessee and Mississippi. Because of this, xAI (now called SpaceXAI after its recent merger with Space X) is facing a lawsuit from the NAACP, which alleges that the operation of these unpermitted turbines resulted in an 111% increase in nitrogen oxide exhaust, an 83% increase in PM2.5 airborne particles, and an 88% increase in formaldehyde emissions. The Reuters investigation says that just 30 of the 59 turbines listed could emit 2,500 tons of nitrogen oxide, 4,000 tons of carbon monoxide, and 22 tons of formaldehyde annually — way above the 100-ton nitrogen oxide threshold that the Clean Air Act set for turbines to operate without a permit.
These pollutants are proven to have adverse effects on the health of the people living within a five-mile radius of the source, and census data showed that the residents living in the affected area are predominantly black. Since Colossus 2 straddles a state boundary, the publication listed the data for two counties — DeSoto County, Mississippi, and Shelby County, Tennessee. Statistics show that about 46% of the population in the former and 94% in the latter are black, which is significantly higher compared to the 33% and 52% in the rest of the counties.
While the report did not say that these communities were deliberately targeted, it also pointed to a 2022 study that showed that areas once redlined by banks still suffer in the present day from higher air pollutant emissions. SpaceXAI recently announced an automatic 50% discount and free hardware rentals on Starlink plans for people living near Colossus 1 and 2, with SpaceX VP for Starlink Michael Nicolls saying on X, “The unique capabilities of the Colossus datacenters could not be accomplished without the partnership and support from the local Memphis community.” While this may bring some benefit to already existing Starlink users, some say that this is merely a PR stunt to help give the company a better image as the community is battling the air and noise pollution they bring to the area.
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