Elon Musk's xAI Faces Backlash From NAACP, Environmental Groups Over Memphis Data Center's Gas-Burning Turbine Permit

Elon Musk's artificial intelligence company, xAI, has been slammed by the NAACP (National Association for the Advancement of Colored People) and environmental rights groups over its Memphis data center.

What Happened: Rights groups in Memphis, Tennessee, filed to appeal a permit issued to xAI allowing the company to use gas-powered turbines to cool the Colossus supercomputer facility, CNBC reported on Thursday.

The appeal cites complaints by residents in the area of increased stench and air pollution disproportionately impacting the majority-black communities in the area, the report suggests.

The appeal was filed by the Southern Environmental Law Center (SELC), representing the NAACP, after the local authorities permitted xAI to use 15 turbines, saying they were small enough to be considered nonroad engines.

"Our health shouldn't be threatened at the hands of billionaires who circumvent the law," NAACP CEO Derrick Johnson said. According to the report, the turbines release Formaldehyde and Nitrogen Oxides, which could lead to respiratory-related illnesses and death.

xAI said in a statement that it was complying with "federal, state and local laws," and accused SELC of making a "baseless, politically-driven appeal."

Why It Matters: The news comes as Musk's xAI recently announced that it was launching Grok for Government after winning defense contracts from the Pentagon worth over $200 million.

xAI also announced it would offer Grok on Tesla Inc. (NASDAQ:TSLA) vehicles in the U.S. as long as the vehicles had the Advanced Micro Devices Inc. (NASDAQ:AMD) Ryzen chip on board the system computer.

Elsewhere, Meta Platforms Inc. (NASDAQ:META) CEO Mark Zuckerberg shared how his company was operating data centers in tents in a bid to catch up to competitors.

Read Next:

• Elizabeth Warren Rips Pentagon Deal With Elon Musk’s xAI Days After Company Apologized For Grok’s ‘Horrific’ Behavior: ‘What Could Possibly Go Wrong?’

Photo courtesy: Kemarrravv13 via Shutterstock