Musk’s xAI explores another massive methane gas turbine installation at second South Memphis data center

MEMPHIS, Tenn. — XAI, a company founded by Elon Musk, is evaluating a plan to install between 40 and 90 polluting methane gas turbines at its second South Memphis data center, according to documents obtained by the Southern Environmental Law Center. The discovery comes as Memphians continue to push back against the company’s use of unpermitted turbines at its first data center, also located in South Memphis.

Methane gas turbines release smog-forming pollution and hazardous chemicals like formaldehyde. These pollutants are tied to increases in asthma, respiratory diseases, heart problems, and certain cancers and are especially harmful to children. XAI’s second data center is planned for South Memphis’ Whitehaven neighborhood and is roughly half a mile from homes and a school.

“XAI appears to be preparing for a truly staggering number of polluting turbines for its second South Memphis data center, all while continuing to run unpermitted turbines nearby,” Amanda Garcia, a senior attorney at the Southern Environmental Law Center, said. “Memphians have repeatedly told local leaders they have serious concerns about how these data centers and their use of gas turbines will impact the air they breathe every day. Local leaders and health officials should be standing with the communities they serve—not a power-hungry company with a history of breaking the rules.”

This week, the Memphis Chamber of Commerce announced xAI would be removing an undisclosed number of gas turbines—which the company had been operating without any permits—from its first South Memphis location. However, this new discovery raises significant concerns that the company may be planning to move the polluting turbines from one South Memphis data center to another.

“Communities in South Memphis shouldn’t be forced to play whack-a-mole with one of the county’s largest polluters,” LaTricea Adams, CEO and President of Young, Gifted & Green, said. “Once again, xAI and local leaders are acting with a remarkable lack of transparency and without input from directly affected communities or local ratepayers. Memphians deserve to know what xAI is planning and how it will affect them.”

The documents say the dozens of turbines would generate up to 1.56 gigawatts of electricity. Estimates suggest that is enough to power more than a million homes and it’s more generating capacity than the Tennessee Valley Authority’s Allen Gas Plant.

Predominantly Black communities in South Memphis are already overburdened with industrial pollution and face a cancer risk four times the national average. The area is home to dozens of industrial facilities including an oil refinery, a steel mill, and a TVA gas plant. The area also struggles with poor air quality. Shelby County is not meeting national limits for ozone—better known as smog—and last month, the county once again received an ‘F’ for ozone pollution from the American Lung Association.

“For decades, our communities have been forced to deal with more than our fair share of industrial pollution, leaving us wondering what’s in our air and how it’s impacting our health. Local leaders should be fighting against environmental injustice, not rolling out the red carpet for another polluting xAI data center with up to 90 methane gas turbines,” KeShaun Pearson, Director of Memphis Community Against Pollution said.

XAI opened its first South Memphis data center in June of last year, following a behind-closed-doors process that even caught some local leaders by surprise. To power the facility, the company installed 35 gas turbines at the site without any permits or public oversight. Despite claims from local officials that xAI was only operating 15 of the turbines, thermal imaging showed that nearly all of the 35 turbines were running.

At a recent public hearing, Memphians strongly urged the Shelby County Health Department to deny xAI’s currently pending air permit for its first location.

“It’s insulting that xAI would even think about bringing dozens of additional polluting gas turbines to South Memphis at the same time that community members are urging the company to remove the dirty turbines already running at its first data center,” Sierra Club Tennessee Conservation Director Scott Banbury said. “The Shelby County Health Department must deny the pending air permit for the first xAI data center until we have all the information about the company’s plans in Memphis and how they will affect our air.”

The records obtained by SELC included a pre-application modeling protocol submitted by xAI’s consultants and did not include an application for an air permit for xAI’s second data center in Whitehaven.