DOJ backs xAI amid lawsuits over pollution at Memphis data center
alex_verem · x · 2026-09-01
A CNBC investigation reveals severe community impacts around xAI's Colossus data center in Memphis.
Environmental and Noise Disputes
- xAI operates nearly 60 gas turbines on-site, many allegedly lacking standard pollution controls.
- Environmental groups counted 33 running turbines against a permit for 15, leading to lawsuits by the NAACP and others under the Clean Air Act.
- Noise levels hit 70 decibels constantly, with residents describing it as "torture" and devaluing properties.
Government and Military Tensions
- The DOJ intervened on xAI's side, with the Pentagon arguing the compute is critical for military operations in Iran.
- This contrasts with a Google data center in Minnesota that gained resident support by funding its own grid upgrades.
Business Success vs. Social Cost
- The site pays $25M annually in taxes and generates massive revenue by renting compute to Anthropic (up to $1.25B/year) and Google.
- Despite a promised water recycling plant being delayed to 2027, the business side remains highly profitable.
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