Musk’s xAI is being sued over its data center generators — and now it’s buying an additional $2.8 billion

Elon Musk’s xAI company has found itself in hot water over its use of polluting generators at its data center near Memphis, Tennessee. And now you want to buy more of them.

In SpaceX’s IPO filing, released on Wednesday, the company said its xAI division will purchase another $2.8 billion worth of turbines for AI infrastructure over the next three years. One deal, worth $2 billion, is specifically for mobile gas turbines, the type it is currently being sued over.

The NAACP sued xAI last month for operating dozens of unregulated gas turbines that worsen air quality in one of the most polluted areas in the country. The organization requested an injunction against XAI’s use of the turbines. To date, XAI has been granted permits for 15 turbines. As of a few weeks ago, 46 ​​were in use.

Each type of xAI turbine in operation has the capacity to emit more than 2,000 tons of nitrogen oxide_S Pollution annually, a group of chemicals that contribute to the smog that causes asthma.

The company claims it can operate the turbines for up to a year without obtaining permits because they are “mobile” — meaning they remain on the trailer they were shipped on. The company appears to be exploiting the discrepancy between state and federal interpretations. Mississippi claims it doesn’t need to allow mobile generators.

But federal regulations stipulate that turbines of that size, even if they are on a trailer, are still subject to air pollution regulations. The EPA ruled earlier this year that XAI was operating the turbines in violation of federal law.

SpaceX acknowledges the risks involved in going public. “We currently rely heavily on natural gas and gas turbine technology to power our data center operations,” she wrote. Revoked injunctions or permits “would negatively impact our AI business.”