Elon Musk’s artificial intelligence venture, xAI, has secured an air permit for its massive data center in Memphis, Tennessee, but the approval is now under fierce scrutiny from civil rights groups.

The National Association for the Advancement of Colored People (NAACP) alleges that the permit, issued by the Shelby County Health Department, blatantly violates the Clean Air Act by undercounting the facility’s pollution output and granting undue leniency to the high-profile company.

According to Ars Technica, the permit allows xAI to operate 15 gas turbines to power its supercomputer, known as Colossus, which is designed to train advanced AI models. However, satellite imagery and on-site observations reveal at least 24 turbines already installed, raising questions about the accuracy of the emissions calculations submitted to regulators.

Preferential Treatment Allegations

The NAACP contends that the health department provided preferential treatment to xAI, expediting the permit process while ignoring potential health risks to nearby predominantly Black communities. Memphis, already plagued by high asthma rates and ranked as a national “asthma capital” by Politico, could see exacerbated air quality issues from nitrogen oxide and other pollutants emitted by the turbines.

Evidence from the Southern Environmental Law Center, representing the NAACP, points to xAI’s operation of unpermitted turbines for months before applying for approval, a move that critics say flouts federal environmental laws. The group has filed a notice of intent to sue, demanding a revocation of the permit and a full environmental impact assessment.

Pollution Fears and Community Impact

Local residents and environmental advocates argue that the data center’s location in South Memphis amplifies environmental injustice, as the area has long suffered from industrial pollution. The Economic Times reports that xAI’s turbines, even with promised emission-reduction technology, could release harmful levels of pollutants, contributing to respiratory illnesses in a community where over 70% of residents are Black.

xAI defends the project, highlighting its $1 billion investment in the region and commitments to sustainable practices. Company representatives told Wired that the turbines are necessary for the energy-intensive demands of AI training, and they plan to transition to cleaner energy sources in the future. Yet, skeptics question the timeline and enforcement of these pledges.

Regulatory Blind Spots Exposed

The controversy underscores broader tensions between rapid tech expansion and environmental regulations. Ars Technica notes that the health department’s decision to permit only 15 turbines despite evidence of more on site suggests a “blind eye” to violations, possibly influenced by Musk’s celebrity status and economic promises.

Industry insiders point out that data centers, fueled by the AI boom, are increasingly straining power grids and air quality standards nationwide. In Memphis, the NAACP’s push for accountability could set a precedent for how regulators handle similar projects, especially in vulnerable communities.

Legal Battle on the Horizon

As the NAACP prepares for litigation, supported by groups like the Southern Environmental Law Center, the case may draw federal oversight from the Environmental Protection Agency. NBC News reports that the intent-to-sue notice gives xAI 60 days to address the concerns, but without resolution, a lawsuit could halt operations at Colossus.

For xAI, the stakes are high: the supercomputer is central to Musk’s ambitions in competing with rivals like OpenAI. Yet, the backlash highlights the growing scrutiny on tech giants’ environmental footprints, forcing a reckoning between innovation and public health. If successful, the NAACP’s challenge could reshape permitting processes for AI infrastructure across the U.S., ensuring that economic gains don’t come at the expense of marginalized populations.