The group argues that xAI has failed to provide guarantees that the jet-powered turbines meet emissions standards for specific pollutants, including formaldehyde. It also accuses xAI of what the report terms the "undercounting" of projected emissions in relation to the data center's power sources. This comes after the same group sued xAI over its use of gas generators without the required permits in an area with more than 100,000 inhabitants.
The availability of energy has long been an issue for data centers, both existing and those still on the drawing board. A July 2026 report predicted that data centers would use 20% of all U.S. power by 2035 , a figure that was a huge 83% increase over the same forecast that was made seven months prior. Despite that news, as of April this year, half of data center buildouts had been canceled or delayed due to, among other things, a lack of power. This is an issue for xAI especially, with Musk saying in August that xAI would increase its data center capacity by 7x before the end of 2027. Delays and cancelations have the potential to derail those plans.
Public sentiment around data centers has turned sour in recent months amid power issues and concerns over how much water these facilities use. While using converted jet engines could potentially help with one issue, it seems unlikely that the pollution they generate will help assuage the concerns of locals anytime soon.
Microsoft-backed AI data center faces backlash over alleged unpermitted gas turbines and 1.5M-gallon LNG tank
SpaceX loses bid to dismiss lawsuit over xAI data center pollution
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/data-centers/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/data-centers/elon-musks-xai-installs-eight-converted-jet-engines-to-power-mississippi-data-center-permits-allow-25-percent-higher-limit-for-pollutants-concerns-raised-over-carbon-monoxide#main
- https://www.tomshardware.com/membership
- How AI Is Changing the Pace of Discovery for Millions Living With Dementia
- Developer manages to run Windows 11 26H2 with just 128MB of RAM, just 3.1% of recommended minimum
- Police Chief physically unplugs Flock cameras after the company ignores contract cancellation
- Elon Musk mocks OpenAI CEO Sam Altman's claim that PCs having RAM is terrible
- NVIDIA Cosmos Opens New Tools to Train, Evaluate and Deploy World Models
Informational only. No financial advice. Do your own research.