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

“`html Elon Musk’s xAI division, a subsidiary of SpaceX, has been sued for operating polluting generators at its data center near Memphis,…

By AI Maestro May 20, 2026 1 min read
Musk’s xAI is being sued over its data center generators — now it’s buying $2.8B more

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Elon Musk’s xAI division, a subsidiary of SpaceX, has been sued for operating polluting generators at its data center near Memphis, Tennessee. The lawsuit alleges that the use of these generators is worsening air quality in one of the most polluted areas of the country.

  • The company now plans to purchase an additional $2.8 billion worth of turbines over the next three years for its AI infrastructure, including a specific deal for mobile gas turbines used in the current legal dispute.
  • Previously, xAI was granted permits for only 15 out of the 46 turbines it was using, but it has been operating these without proper regulatory approval. This has led to ongoing disputes with environmental groups and regulatory bodies.
  • The use of mobile gas turbines poses significant air pollution risks, as each turbine can emit over 2,000 tons of NOx annually, contributing to smog formation that affects public health.

SpaceX acknowledges the potential legal implications in its recent IPO filing. The company states that such operations are crucial for their AI business and any changes could adversely affect their operations.

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