Elon Musk's AI startup, xAI, is facing criticism from environmental and health advocates for allegedly contributing to pollution in Memphis, Tennessee, by using natural gas-burning turbines at its data center without obtaining necessary permits.

The Southern Environmental Law Center sent a letter to the Environmental Protection Agency and the health department in Shelby County where the data center is located.

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration

"Despite installing nearly 20 gas turbines with a combined capacity of about 100 MW - enough electricity to power around 50,000 homes - xAI apparently has not applied for any air permits for these turbines," the letter, dated Aug. 26, said.

The environmental legal advocacy organization called on the county's health department to verify if xAI is operating these turbines without the required air permits and take enforcement action.

It said the gas turbines emit large quantities of gases that exacerbate already poor air quality in Memphis.