On July 30, 2026, xAI announced that it had reached an agreement with the Mississippi Department of Environmental Quality (DEQ). The company stated that it will remove the gas turbines it has been operating at the Memphis Colossus data center by July 2027. Following the removal, there are plans to replace them with a natural gas power plant.
xAI Announces Removal of Gas Turbines at Memphis Colossus by July 2027
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These turbines were initially installed as "temporary" measures, but they had already been in operation for two years. Local residents had expressed concerns regarding pollution and health hazards caused by the exhaust emissions.
This development follows lawsuits filed by environmental organizations. The Southern Environmental Law Center (SELC), acting on behalf of the NAACP, had filed suit citing violations of the Clean Air Act. However, the federal government requested the dismissal of the lawsuit, arguing that xAI's models are essential for AI innovations supporting Department of Defense military operations for reasons of national security.
As a result, neighboring residents had lost their legal means of recourse. Under the current agreement, no announcements have been made regarding penalties or compensation for the exhaust emissions released over the past several years.
Source: xAI, SpaceX, and the Race for AI Buildout (HN 149pt, 120 comments) (HN Search (backfill), 2026-08-07)