Musk’s xAI is being sued over its data center generators. Now, it’s buying $2.8B more.

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Gas turbines are disposable   astatine  an xAI information  halfway  connected  Riverport Rd successful  Memphis, TN connected  April 25, 2025.Image Credits:Brandon Dill for The Washington Post / Getty Images

2:55 PM PDT · May 20, 2026

Elon Musk’s xAI has gotten itself successful hot water implicit its usage of polluting generators astatine its information halfway adjacent Memphis, Tennessee. Now, it wants to bargain adjacent much of them.

In SpaceX’s IPO filing, released Wednesday, the institution said its xAI part volition bargain different $2.8 cardinal worthy of turbines for its AI infrastructure implicit the adjacent 3 years. One deal, worthy $2 billion, is specifically for “mobile state turbines,” the benignant that it’s presently being sued over. 

The NAACP filed a lawsuit against xAI past period for operating dozens of unregulated state turbines that worsen aerial prime successful 1 of the astir polluted parts of the country. The enactment has sought an injunction against xAI’s usage of the turbines. So far, xAI has been granted permits for 15 turbines. As of a fewer weeks ago, it was utilizing 46.

Each of the types of turbines xAI is operating person the imaginable to emit much than 2,000 tons of NOx contamination annually, a radical of chemicals that contributes to asthma-inducing smog. 

The institution claims that it tin run the turbines for up to a twelvemonth without permits due to the fact that they are “mobile” — that is, they’re inactive connected the trailer they were shipped on. The institution appears to beryllium exploiting a discrepancy betwixt authorities and national interpretations. Mississippi claims it doesn’t request to licence mobile generators. 

But national regulations accidental that turbines of that size, adjacent if they’re connected a trailer, are inactive taxable to air-pollution regulations. The EPA ruled earlier this twelvemonth that xAI was operating the turbines successful usurpation of national law.

SpaceX acknowledges the risks successful its IPO filing. “We presently trust importantly connected earthy state and state turbine exertion to powerfulness our information halfway operations,” it wrote. Injunctions oregon rescinded permits “would adversely impact our AI business.” 

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Tim De Chant is simply a elder clime newsman astatine TechCrunch. He has written for a wide scope of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, wherever helium was founding editor.

De Chant is besides a lecturer successful MIT’s Graduate Program successful Science Writing, and helium was awarded a Knight Science Journalism Fellowship astatine MIT successful 2018, during which clip helium studied clime technologies and explored caller concern models for journalism. He received his PhD successful biology science, policy, and absorption from the University of California, Berkeley, and his BA grade successful biology studies, English, and biology from St. Olaf College.

You tin interaction oregon verify outreach from Tim by emailing tim.dechant@techcrunch.com.

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