Musk’s xAI is being sued over its data center generators — now it’s buying $2.8B more

Each of the types of turbines xAI is operating have the potential to emit more than 2,000 tons of NOx pollution annually, a group of chemicals that contributes to asthma-inducing smog. 

The company claims that it can operate the turbines for up to a year without permits because they are “mobile” — that is, they’re still on the trailer they were shipped on. The company appears to be exploiting a discrepancy between state and federal interpretations. Mississippi claims it doesn’t need to permit mobile generators. 

But federal regulations say that turbines of that size, even if they’re on a trailer, are still subject to air-pollution regulations. The EPA ruled earlier this year that xAI was operating the turbines in violation of federal law.

SpaceX acknowledges the risks in its IPO filing. “We currently rely significantly on natural gas and gas turbine technology to power our data center operations,” it wrote. Injunctions or rescinded permits “would adversely affect our AI business.”