Musk’s xAI scores permit for gas-burning turbines to power Grok supercomputer in Memphis

Musk’s xAI scores permit for gas-burning turbines to power Grok supercomputer in Memphis


The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024. 

Jonathan Raa | Nurphoto | Getty Images

Elon Musk’s xAI attained an official permit to power its supercomputer facility in Memphis, Tennessee, using natural gas-burning turbines, according to public records shared by the company on Wednesday.

The Shelby County Health Department issued the permits on July 2, despite months of protests and public hearings where local residents decried the turbines’ impact on local air quality. Musk’s artificial intelligence startup, which now owns his social media site X, will face formal emissions limits, testing requirements and deadlines in order to keep operating 15 turbines at the facility.

The permit says non-compliance with requirements could result in daily fines of up to $10,000 per violation.

People who live near the Colossus supercomputer in Memphis have said that after xAI fired up the turbines, they experienced poor air quality in the area and found it nearly impossible to keep windows open or exercise outdoors due to the stench.

The turbines emit nitrogen oxides and formaldehyde, among other pollutants, according to spec sheets on the website of the installer, Solaris Energy Infrastructure, based in Houston. SEI markets itself as a “power-as-a-service provider,” able to deliver quick deployment of portable, natural gas generators at data centers and other facilities with immediate and significant power demands.

Exposure to high levels of nitrogen oxides, which are precursors to ozone formation, have been associated with higher risk of death from respiratory disease.

The permit was issued a day after the local health department named Bruce Randolph interim director and health officer.

It also landed as xAI faces a pending lawsuit from the NAACP, which says Musk’s company has violated the Clean Air Act with its use of the turbines.

The Southern Environmental Law Center, which is representing the NAACP, said in a statement to CNBC that a satellite image from July 1, showed “at least 24 turbines still at the xAI site, more than the 15 allowed by this newly published permit.” The firm previously spotted 35 turbines installed at the facility, with more than 15 operating at a time.

In a statement to CNBC on Wednesday, xAI said it welcomed the decision by Shelby County, adding that, “Our onsite power generation will be equipped with state-of-the-art emissions control technology, making this facility the lowest emitting of its kind in the country.”

After buying X earlier this year in a deal that xAI said valued the combined company at $80 billion, Musk’s startup is seeking to build an even larger datacenter near Colossus, with SEI providing the turbines. This week the company raised a combined $10 billion in debt and equity, according to Morgan Stanley, which led part of the financing.

XAI is aiming to develop products that compete with Google’s Gemini, Open AI’s ChatGPT and other AI systems. The company’s Grok chatbot, powered by the Memphis supercomputer, is integrated into X.

Musk’s other companies are benefitting from xAI’s Memphis buildout. According to financial filings from Tesla, xAI spent “approximately $191.0 million during 2024 and $36.8 million through February 2025” on purchases of the company’s Megapack products, which are giant backup batteries or battery energy storage systems.

WATCH: Musk says he has no plans to merge Tesla and xAI

Tesla CEO Elon Musk: No plans to merge Tesla and xAI



Source

Global week ahead: Crunch time for trade talks as Trump’s deadline nears
World

Global week ahead: Crunch time for trade talks as Trump’s deadline nears

U.S. President Donald Trump speaks to the media during a tour of the Federal Reserve Board building, which is currently undergoing renovations, in Washington, D.C., U.S., July 24, 2025. Kent Nishimura | Reuters I think most would agree that the news cycle has been relentless for most of 2025, but certain stories do seem a […]

Read More
Are 2 to 3 cups of coffee a day too much? It’s complicated, experts say: ‘It’s different for each person’
World

Are 2 to 3 cups of coffee a day too much? It’s complicated, experts say: ‘It’s different for each person’

Two-thirds of Americans drink coffee every single day, according to data collected by the National Coffee Association in 2022, and the debate about how much is too much and whether or not any amount of caffeine is safe persists. But recent research shows that the answer is more complicated than you’d think. A Harvard study, that followed […]

Read More
Media trailblazer Tom Rogers changes ‘raging bull’ stance on Netflix, sees worrisome signs
World

Media trailblazer Tom Rogers changes ‘raging bull’ stance on Netflix, sees worrisome signs

Former NBC Cable President Tom Rogers is dialing back his bullishness on Netflix. The media trailblazer, who was a self-proclaimed “raging bull” on Netflix, told CNBC’s “Fast Money” this week he’s starting to worry — and listed competition with free content on YouTube as a headwind. “[Netflix] still [has] more hit shows than all the […]

Read More