EPA rules that xAI’s natural gas generators were illegally used

The U.S. Environmental Protection Agency has ruled that xAI, founded by Elon Musk, illegally operated dozens of natural gas turbines to power its Colossus data centres in Tennessee.

According to the EPA’s decision issued Thursday, xAI had been running the generators without proper authorisation. The company argued that the turbines were exempt from federal regulations because they were being used temporarily. The EPA rejected that claim and issued a final ruling stating that xAI violated environmental rules. The decision follows more than a year of review by the agency.

The generators had already drawn criticism from residents and environmental and legal advocacy groups. xAI faced a lawsuit alleging that its turbines increased ozone and particulate pollution in a region already struggling with poor air quality.

At its peak, the company was operating as many as 35 natural gas turbines at the site. Only 15 of those turbines were eventually permitted. As of now, xAI is operating 12 turbines to power its Tennessee data centre facilities.

The EPA’s ruling formally concludes that the unpermitted use of the generators violated federal environmental regulations.