Adrian Signs
MEMFIS, Tenn. (AP) — NAACP and the Environmental Group said Tuesday they intend to surrender Xai, an artificial intelligence company, from Elon Musk, over concerns about air pollution generated by a supercomputer facility located near Memphis’ mostly black communities.
The Xai data center was partially mounted with a contaminated gas turbine without first applying for a permit last year. Authorities said the exemption allowed them to operate for up to 364 days without permission, but Patrick Anderson, a lawyer with the Southern Environmental Law Center, said at a press conference there was no such exemption for turbines.
A 60-day notice of the intent of the lawsuit, a prerequisite for filing a lawsuit under the Clean Air Act, was sent to Xai by letter. SELC represents the NAACP in the potential legal challenges for Xai and its permit applications and is currently being considered by the Shelby County Health Department.
Xai Company responds
The company said Tuesday it took its commitment to the community and the environment seriously.
“Temporary power generation units operate in accordance with all applicable laws,” the Xai statement said.
Musk’s Xai says the turbines are equipped with technology to reduce emissions. He also said it is already boosting the city’s economy by investing billions of dollars in supercomputer facilities, paying millions of dollars in local taxes and creating hundreds of jobs. The company is also spending $35 million and $80 million to build the power generation engine to build a water recycling plant to support local utilities Memphis, light, gas and water.
The Memphis Chamber of Commerce made a surprising announcement in June 2024 that Zai is planning to build a supercomputer in the city. The data center quickly set up a store in South Memphis, South Memphis, the factory near the factory operated by the Tennessee Valley Department.
What your opponent is saying
Opponents say the supercomputing centers are highlighting the power grid. They claim that turbines emit smog and contaminants that cause lung irritation, such as carbon dioxide, nitrogen oxides and carcinogenic formaldehyde.
SELC said that turbine use violates the Clean Air Act, and residents living near the Xai facility are already at risk of cancer at four times the national average. The group also sent a petition to the Environmental Protection Agency.
Critics say Xai installed the turbines without surveillance or notification to the community. The company requires 15 turbines to be operated on its site, but SELC said it hired a company to fly the facility and found up to 35 turbines that are sometimes in operation.
The permit itself states that emissions from the site “will serve as an area source for dangerous air pollutants.” The permit allows the health department to monitor the air quality near the facility, which has received 1,700 public comments about the permit.
Controversial public meeting
Opponents of the facility say city leaders are not transparent with the community about their dealings with Zai, but are sacrificing the health of their residents in return for their economic benefits.
At a community meeting hosted by the county health department in April, many of the opposition spokespersons cited the additional pollution burden of cities already receiving the “F” grade of ozone pollution from the American Lung Association.
A statement read by Xai’s Brent Mayo at the meeting estimated that the company hopes to “strengthen the structure of its community” and that tax revenue from data centers is likely to exceed $100 million by next year.
“This tax revenue supports important programs such as public safety, health and welfare, education, education, firefighters, police, parks and more,” the statement said.
The company also clearly wants to expand. The Chamber of Commerce said in March that Xai had purchased a million square feet of property at its second location not too far from its current facility.
The mayor of Memphis is being measured
Mayor Paul Young said in his weekly newsletter Friday that the ordinance requires that 25% of Xai’s city’s property tax revenue be directly reinvested into the neighborhood within five miles of the facility.
Young also said that tax incentives and public dollars were not linked to the project.
“Let’s be clear, this is not a discussion between the environment and economics,” Young said. “It’s about putting people in front of politics. It’s about building something better for a community that has been waiting too long for real investment.”
Boxtown punches
One nearby neighborhood that deals with decades of industrial pollution is Boxtown, a close-up community founded by freed slaves in the 1860s. It was named Boxtown after residents strengthened the home using materials discarded from railroad box cars. The area has houses, wooded areas and wetlands, with mostly working-class residents.
Boxtown won in 2021 against two companies that tried to build an oil pipeline in the region. All American pipelines for Valero and Plains have canceled the project after protests by residents and activists led by state legislator Justin J. Pearson.
Pearson, who represents the neighbouring region, said “clean air is human rights” as Memphisians called to unite with Zai.
“No one can deny the fact that no matter how wealthy or powerful a person is, everyone has the right to breathe clean air,” said Pearson, who compared the fight with Zai to David and Goliath.
“We can all become David because we know how the story ends,” he said.
Reporter Travis Lorler was a contribution from Nashville, Tennessee.
Original issue: June 17th, 2025, 12:49pm EDT
