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Elon Musk wins controversial permit that could change this American city forever

Home> News> AI

Published 14:39 7 Jul 2025 GMT+1

Elon Musk wins controversial permit that could change this American city forever

Musk's company has already received fervent opposition from residents

Harry Boulton

Harry Boulton

Elon Musk and xAI have seemingly escaped the ire of its home community thanks to a highly controversial new permit, which could change the landscape of one key American city forever.

One of the key concerns surrounding the rapid expansion and development of artificial intelligence technology is its high power demands, which only appear to continue to grow as it gets stronger.

Our planet is already struggling with a climate crisis which is likely nearing a critical tipping point according to experts, yet ramped up efforts to keep up with the demand for AI is only increasing the strain on the environment.

An area that is perhaps overlooked though is the effect on smaller-scale locations where AI data centers are based, as while power demands effect the climate as a whole, these headquarters appear to have a more destructive and immediate impact on local areas and residents.

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Memphis health officials have granted xAI a new permit which allows 15 methane gas turbines to be used at its data center (Brandon Dill for The Washington Post via Getty Images)
Memphis health officials have granted xAI a new permit which allows 15 methane gas turbines to be used at its data center (Brandon Dill for The Washington Post via Getty Images)

What permit has Elon Musk won?

As reported by Futurism, the Memphis local health department has now granted Elon Musk's xAI data center a new permit that allows it to continue operating methane gas turbines that the growing demands of the LLM.

xAI came under heavy scrutiny by local residents and activists earlier this year when it was noted that the company was using a greater number of the aforementioned methane generators than its permit permitted, yet this new award has mitigated that issue despite pushback.

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The new permit, as per Wired, indicates that xAI now has the right to operate 15 turbines on its facility, although aerial footage captured by the Southern Environmental Law Center has claimed that there are at least 35 turbines currently on the site.

The data center itself is located in the 3,000-strong neighborhood of Boxtown in Memphis, Tennessee, and many residents have complained about the harmful toxins and gas that is now present in the air as a consequence of xAI.

Historically Boxtown has been at the heart of pollution issues, having been the home of the Allen Fossil Plant which spread noxious coal ash throughout the community, and it now faces a new threat just six years after the Allen plant was forcibly closed.

Residents are also facing extreme spikes in their energy bills, as per Smart City Memphis, with locals having to pay prices around 85% higher than Musk's data center for their electricity.

What have local residents said about the xAI data center?

Speaking to Politico, Boxtown native Alexis Humphreys explained: "I can't breathe at home," adding that "it smells like gas outside."

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That isn't an isolated incident either, as many residents have reported suffering adverse health effects as a consequence of the pollution produced by xAI's data center.

KeShaun Pearson, director of Memphis Community Against Pollution, has continued to speak out against Musk's company, focusing particularly on the controversial decision by local health officers to grant the permit.

"Our local leaders are entrusted with protecting us from corporations violating on our right to clean air," Pearson outlined, "but we are witnessing their failure to do so."

KeShaun Pearson has remained one of the most outspoken activists against xAI's data center (Shoutout Atlanta)
KeShaun Pearson has remained one of the most outspoken activists against xAI's data center (Shoutout Atlanta)

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Pearson was also personally affected by the fumes emanating from the data center, as he believes that the deaths of two of his family members were linked to xAI's pollution.

"Nobody else should be burying their families because these rogue, rich, white, racist people continue to build projects that are suffocating us. This is all preventable," Pearson proclaimed.

The NAACP civil rights group has also announced its intentions to sue xAI, as per The Guardian, alleging that Musk's company is violating the Clean Air Act despite being gifted permission by local authorities.

Abre' Conner, director of environmental and climate justice at the NAACP, outlined in a statement: "While the NAACP is glad that 15 of xAI's turbines are now subject to greater transparency and accountability around their methane gas emissions [...] this decision ignores the community pushback. We are still committed to holding xAI and the health department accountable."

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One xAI spokesperson has downplayed the polluting impact of its data center (Brandon Dill for The Washington Post via Getty Images)
One xAI spokesperson has downplayed the polluting impact of its data center (Brandon Dill for The Washington Post via Getty Images)

Conversely, a spokesperson from xAI has downplayed the data center's polluting potential, revealing that the company "welcomes today's decision," and 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."

Featured Image Credit: Chesnot / Contributor / Getty
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