U.S. regulators officially ruled on Thursday that Elon Musk's artificial intelligence company xAI violated the law while operating a large data center in Tennessee. The core of the dispute was that the company used dozens of methane gas turbines to power its supercomputing center without applying for air quality permits as required.

Over the past one and a half years, xAI has been defending the use of gas turbines near its “Colossus” facility in Memphis. The company previously argued that these devices were temporary or mobile power sources and could be exempt from permit requirements, even exploiting local legal loopholes by ensuring that each device was placed for no more than 364 days to avoid regulation. However, in the latest ruling, the U.S. Environmental Protection Agency (EPA) clearly stated that even temporarily used generators must comply with the Clean Air Act and revised policies to close such loopholes.

This ruling is seen as a major victory for local community activists in Memphis. Environmental organizations point out that xAI's data centers are located near historically Black communities, and unpermitted gas turbines emit large amounts of nitrogen oxides into the air, which may cause health issues such as asthma and cancer. According to the EPA, the implementation of the new regulations could reduce nitrogen oxide emissions by up to 296 tons annually by 2032.

Currently, xAI is facing pressure to expand rapidly, with the Colossus1 center consuming electricity equivalent to the annual total of 100,000 homes. Despite increased regulatory pressure, Musk still plans to build larger supercomputing facilities in Mississippi and other areas.

Key Points:

  • ⚖️ Ruling as Violation: The U.S. EPA ruled that xAI using methane gas turbines without air quality permits constitutes an illegal act and eliminated the so-called "temporary equipment exemption" loophole.

  • ⚠️ Environmental Risk: Local communities and environmental organizations accuse the data center of worsening air pollution around the area, with nitrogen oxides emitted posing serious threats to public health.

  • ⚡ Expansion Challenges: Faced with huge power demands for computing capacity, xAI must find a balance between rapidly building supercomputing centers and complying with federal environmental regulations.