Last summer, a quiet, old factory in southwest Memphis got a new life, thanks to Elon Musk, the world’s richest man. His AI company, xAI, moved in and transformed the building into what Musk calls the “world’s largest supercomputer.” Named Colossus, Musk claimed it was the “most powerful AI training system in the world.”

Locals were told this would bring jobs, more tax money, and help turn Memphis into a tech hotspot called the “Digital Delta.” xAI even promised a second facility in the city, saying, “This is just the beginning.” But for the people living nearby in Boxtown, a mostly Black, low-income area long suffering from pollution, this new supercomputer is causing serious health worries.

Power Without Permits: Turbines Raising Health Alarms

Because AI uses huge amounts of power, xAI installed dozens of gas-powered turbines that release toxic pollution. The company does not have air permits and seems to rely on a loophole meant for temporary turbines. Environmental groups say this doesn’t apply, and the residents are angry. Sarah Gladney, who lives just 3 miles away and has a lung condition, said, Our health was never considered, the safety of our communities was never, ever considered. xAI has not responded to CNN’s requests for comment regarding the pollution concerns.

The Memphis area already hosts 17 polluting factories, and now faces added pressure from Musk’s AI project.Amid Trump-era rollbacks on environmental protections, officials like Erika Sugarmon fear vulnerable communities are being left without safeguards.

Musk’s AI Race in Memphis

The new Memphis site is part of Musk’s plan to lead the AI world. It powers xAI’s chatbot, Grok, which they promote as an “anti-woke” alternative to ChatGPT. However, Grok has been criticized for weak controls, including letting users create Nazi Mickey Mouse images.

Memphis Mayor Paul Young supports xAI’s arrival, pointing to hundreds of high-paying jobs and $30 million in tax money expected in the first year. He called it “game changing” and “an opportunity to completely transform our economy.” But many others are worried.

Grid Stress and Toxic Output

Some lawmakers say they were surprised by the facility and didn’t get enough information. State Rep. Justin Pearson, who lives 3 miles away, was especially concerned about how it’s powered. “Our grid is already not stable enough,” he said, mentioning recent rolling blackouts.

The facility gets 150 megawatts from the local utility, Memphis Light, Gas and Water (MLGW), enough to power about 100,000 homes. MLGW says it studied the impact carefully and says more power (another 150 megawatts) is awaiting approval. Pearson’s main concern: the gas turbines installed last summer.

These turbines release nitrogen oxides, which cause smog and can lead to asthma attacks, chest pain, reduced lung function, and even early death. They also emit formaldehyde, a cancer-causing chemical, and tiny pollution particles that enter the bloodstream.

The area already faces serious air pollution. A ProPublica analysis found the cancer risk from industrial pollution here is 4.1 times above the EPA’s safe limit. Shelby County has an F grade for ozone pollution from the American Lung Association and the highest child asthma hospitalization rates in Tennessee.

Legal Loopholes and Local Fury

In March, the Southern Environmental Law Center and volunteer pilots took aerial photos showing 35 turbines at the facility. They can produce up to 420 megawatts, like a medium- to large-sized power plant, said Patrick Anderson from SELC. These turbines could release as much as 2,000 tons of nitrogen oxide pollution a year, making xAI one of the largest polluters in the county. Thermal images from April showed 33 turbines were hot and working.

The community is upset because xAI does not have air permits. The company seems to use a loophole for temporary turbines operating less than a year. But SELC says the turbines are too big and polluting to qualify. Anderson said, “Our position is (xAI is) without a permit, they should not be operating.”

In January, months after starting, xAI applied for permits for 15 turbines. The Shelby County Health Department is reviewing the application and said all community feedback will be “carefully considered.” Twelve turbines were removed in May, and Mayor Young says the rest will be removed eventually, but there’s no clear timeline. The Greater Memphis Chamber of Commerce says the turbines will meet “industry-leading emission standards” after pollution controls are installed.

For Rep. Pearson, the situation is shocking. “It’s an actual gas plant in the middle of a neighborhood and you don’t need any permitting?” he asked. “Something has failed drastically and significantly with our system of checks and balances.”

A Long History of Struggle

Some xAI supporters claim critics are just upset with Elon Musk.However, KeShaun Pearson, director of Memphis Community Against Pollution, disagrees. He says southwest Memphis has long fought to protect clean air, soil, and water. In 2021, residents stopped a crude oil pipeline crossing Boxtown and other mostly Black communities. A medical sterilizing plant pumping cancer-linked toxins shut down in 2023 after local protests.

xAI’s facility is “not a new fight; this is the most recent,” Pearson said. Southwest Memphis has often been treated like a “sacrifice zone.”

Economic Promise or Environmental Cost?

Pearson doubts the promises of many good jobs. Data centers usually don’t need many workers, and most local jobs may be janitorial or security. He also worries that xAI’s tax money won’t make up for the health problems. His grandparents both died from cancer in their 60s, which he believes pollution caused. This situation highlights two very different views of AI’s impact.

For some leaders, xAI brings investment to a struggling area, AI job training for youth, and money to improve indoor air pollution, said Mayor Young. But many residents and environmental groups see it differently. “If the innovation shackles you to fossil fuels like methane gas or coal, that’s regression, right? That’s not progress,” said Pearson.

The Future of AI and Environmental Justice

More power-hungry data centers like this may appear across the US as the Trump administration and tech companies push AI. The EPA calls making the US the AI “capital of the world” a key goal.

An EPA spokesperson told CNN,

“the Trump EPA will continue to implement its core mission of protecting human health and the environment while Powering the Great American Comeback,”

but did not answer specific questions about xAI. Rep. Pearson fears the worst. If you look at where these data centers are propping up, it’s always in poor communities,” he said. There is ‘no hope’ the federal government will help protect them.