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Elon Musk's xAI Company Embroiled in Environmental Scandal in the US
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Briefly Editorial Team

Elon Musk's xAI Company Embroiled in Environmental Scandal in the US

TL;DR

  • xAI, owned by Elon Musk, faces environmental scandal in the US
  • Company illegally operates 50 gas turbines at its Mississippi data center
  • NAACP files lawsuit against xAI on behalf of local residents

Why it matters

The situation has intensified criticism of rapidly growing AI data centers, which require increasing amounts of energy but ignore environmental and regulatory issues.

Environmental Scandal in the US

Elon Musk's company, xAI, has found itself at the center of a new environmental scandal in the US. At its large data center in the state of Mississippi, almost 50 gas turbines are operating illegally — local authorities have no control over these systems due to a legal loophole.

Details of the Scandal

In the state, these installations are considered «mobile» because they are placed on trailer platforms, and this is what allows xAI to circumvent emission standards. The NAACP, which deals with civil rights protection, has spoken out against xAI. The organization filed a lawsuit on behalf of local residents. Activists claim that uncontrolled turbine emissions worsen air quality in a region that already has a high level of pollution.

Legal Aspect

The key point of the dispute concerns the status of these installations. Lawyers from the Southern Environmental Law Center, representing the plaintiffs, argue that xAI's turbines actually operate as a stationary source of pollution and are subject to federal regulation, even if they are formally installed on trailers. In their opinion, the company should not use this scheme to evade environmental requirements.

Situation with Permits

Meanwhile, xAI officially received permits for only 15 turbines, but in fact continued to increase their number. According to local media reports, 46 turbines are currently operating at the site, although earlier the Greater Memphis Chamber of Commerce reported that about half of the 35 installations introduced in May 2025 would remain in place for a long time.

Impact on the Industry

The situation has intensified criticism of rapidly growing AI data centers, which require increasing amounts of energy but ignore environmental and regulatory issues.