Musk's xAI Removes Gas Turbines From Memphis Data Center After Public Outcry

Elon Musk's xAI has removed some of the natural gas turbines that have been powering its Colossus data center in Memphis. The turbines have received criticism from residents and environmental groups that claim the company is operating them without permits and violating federal clean air standards. 

Colossus, built last year on the site of a former Electrolux factory, is one of the world’s largest artificial intelligence supercomputers, hosting hundreds of thousands of graphics processing units that power xAI's chatbot, Grok.

The facility has been powered by temporary natural gas turbines located on-site since it came online in July. 

While the presence of the methane gas turbines has been controversial, this week’s decision to remove an unknown number of them wasn't driven by public criticism but rather was due to the site now receiving 150 megawatts of grid power from a newly completed substation, the Greater Memphis Chamber said in a statement.

The chamber said that around half of the remaining turbines will continue operating to power a portion of the Colossus facility until a second substation is completed, which is planned for this fall.  

“xAI is committed to Memphis through their sustainable environmental practices,” the chamber said in its statement, adding that it is participating in a demand response program and is exploring ways to provide energy to the grid. 

The presence of 35 gas turbines on the site capable of generating 422 MW of power was revealed last month through aerial photographs published by the Southern Environmental Law Center. According to SELC, xAI is only permitted to operate 15 generators on the site. The group said the extra 20 generators constitute a violation of the Clean Air Act. 

“xAI has essentially built a power plant in South Memphis with no oversight, no permitting, and no regard for families living in nearby communities,” SELC senior attorney Amanda Garcia said at the time.

XAI didn't respond to Bisnow's request for comment. 

Although some local leaders contended that only 15 of the turbines were operational, the SELC released thermal imaging that it says shows all of the units in use. The revelations generated outcry from Memphis residents and some officials who claim emissions from the facility are causing debilitating air quality issues. 

XAI is planning a second Memphis data center, acquiring a 1M SF site in the city’s Whitehaven district in March to expand its high-performance computing cluster in the city.

The AI firm paid close to $80M for the three–parcel site, which company executives said was chosen due to its proximity to a 781 MW Tennessee Valley Authority gas power plant that will provide at least some of the facility’s electricity, according to the Daily Memphian. The data center’s planned power consumption hasn't been disclosed, but local utility Memphis Light, Gas and Water indicated that xAI requested impact studies for 260 MW of capacity.