Environmental groups are planning to sue Elon Musk’s artificial intelligence company for powering a data center with unpermitted gas turbines — again.
The legal threat comes as the billionaire’s company xAI uses dozens of bus-sized generators to provide energy for data centers in Southern states. It has argued that the gas-powered machines don’t need to be permitted unless they’re in operation for a year, prompting EPA to clarify that permits are needed.
The environmental groups argued in a Friday letter that xAI is relying on 27 gas turbines to power a data center in Southaven, Mississippi, adding that the company has not obtained federal permits. The generators could provide almost 500 megawatts of power, according to the groups’ estimates.
This is the second time xAI has been accused of violating the Clean Air Act to power a data center. Another facility, located in South Memphis, Tennessee, was powered by over 30 gas turbines for more than a year before xAI received a permit in July 2025. Environmental groups alleged that it violated federal rules at the time, but the company argued it didn’t need permits because the massive generators had been at the data center for less than 12 months.
