US regulators have closed a loophole that allowed Elon Musk’s AI company, xAI, to operate gas-burning turbines at its Memphis data centre without full air pollution permits. The move follows concerns over emissions and local health impacts.
The US Environmental Protection Agency clarified that mobile gas turbines cannot be classified as ‘non-road engines’ to avoid Clean Air Act requirements. Companies must now obtain permits if their combined emissions exceed regulatory thresholds.
The Colossus data centre, opened in 2024, supports training and inference for Grok AI models and other services linked to Musk’s X platform. NVIDIA hardware is used extensively at the site.
Residents and environmental groups have raised concerns about air quality, particularly in nearby communities. Legal advocates say xAI’s future operations will be closely monitored for regulatory compliance.
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