According to Reuters, Elon Musk’s Colossus 2 data center operates 59 gas turbines without the required permits. These turbines are said to emit thousands of tons of pollutants, primarily affecting Black communities near the border of Tennessee and Mississippi, where elevated rates of lung diseases have already been reported.
The Colossus 2 xAI center, which operates independently from the power grid due to its own gas turbines, reportedly emits thousands of tons of nitrogen oxides and carbon monoxide each year. Reuters reports that the company installed 59 temporary mobile gas turbines without the necessary permits. These mobile units, according to the agency, have the most significant impact on surrounding communities, where predominantly Black populations already suffer disproportionately from lung diseases.
Controversial Permits and Emissions
xAI claims it operates 27 turbines without permits, citing an exception for temporary installations. The use of turbines, which Reuters indicates operate without the necessary permits, has raised concerns in the past. Local residents previously discovered that the company was using more than 30 gas turbines, although as of July 2025, an application had been submitted for only 15. The company maintains that these turbines do not require permits because they are not permanent structures and are intended to be relocated within 364 days.
The U.S. Environmental Protection Agency (EPA) revoked previous exceptions earlier this year but told Reuters that “it is considering the possibility of relaxing regulatory requirements for mobile units while continuing to protect public health.” The Colossus data centers were constructed in record time, necessitating Elon Musk to rely on his own energy sources, as connecting to the power grid could take years, particularly due to the need to modernize infrastructure to provide 1 GW of power. Meanwhile, obtaining permits under the Clean Air Act could also be a lengthy process, and according to Reuters, the company opted to bypass this procedure.
The situation is further complicated by the fact that the data center itself is located in Tennessee, while at least 57 of the 59 turbines are installed in Mississippi. In March, state authorities issued a permit for the construction of 41 permanent turbines. Representatives of xAI and Mississippi’s environmental regulators assert that the current turbines are mobile and therefore do not require separate permits. However, they are also not covered by the permit issued for the 41 stationary turbines. This has drawn criticism from local communities near Colossus 2, situated near the border of Tennessee and Mississippi.
NAACP Lawsuit and Impact on Communities
As a result, xAI, which operates under the name SpaceXAI following its merger with SpaceX, is facing a lawsuit from the NAACP (National Association for the Advancement of Colored People). The organization alleges that the operation of these turbines has led to a 111% increase in nitrogen oxide emissions, an 83% rise in fine particulate matter PM2.5, and an 88% increase in formaldehyde. According to Reuters, only 30 of the 59 turbines can emit approximately 2,500 tons of nitrogen oxides, 4,000 tons of carbon monoxide, and 22 tons of formaldehyde annually. This significantly exceeds the Clean Air Act threshold of 100 tons of nitrogen oxides per year for operation without the appropriate permit.
These pollutants have been shown to adversely affect the health of individuals living within a five-mile radius of the emission source. Census data indicates that predominantly Black populations reside in nearby areas. Since Colossus 2 is located near the border of two states, Reuters provided data for DeSoto (Mississippi) and Shelby (Tennessee) counties, where the proportion of Black residents is approximately 46% and 94%, respectively, significantly higher than in neighboring counties—33% and 52%. The agency does not assert that these communities were chosen intentionally but references a 2022 study showing that areas previously subjected to redlining (discriminatory lending and housing policy practices) continue to experience higher levels of air pollution today.
SpaceXAI recently announced a 50% discount and free equipment rental for Starlink services for residents near the Colossus 1 and Colossus 2 centers. SpaceX Vice President of Starlink Michael Nicolls stated on the X platform: “The unique capabilities of the Colossus data centers could not have been realized without the partnership and support of the local Memphis community.” However, some local residents view this initiative as an attempt to improve the company’s image while complaints about noise and air pollution persist.
