The Colossus data-center technology complex, operated by SpaceXAI—a company formed following the merger of xAI with Elon Musk’s aerospace giant SpaceX—has become the focus of an environmental controversy. The facility near Memphis, Tennessee, one of the world’s largest artificial-intelligence hubs, operated for an extended period using dozens of mobile gas turbines transported by truck and activated without official permits.

Because of the equipment’s operation, the Southern Environmental Law Center (SELC), acting on behalf of the National Association for the Advancement of Colored People (NAACP), initiated legal proceedings against the company.
Hazardous Smog and Health Risks
According to environmental advocates, the 69 mobile gas generators are capable of releasing more than 2,000 tons of nitrogen oxides into the atmosphere each year. Nitrogen oxides are a major contributor to smog formation.
Fuel combustion also releases formaldehyde, a hazardous carcinogen associated with respiratory cancers and inflammatory conditions.

According to estimates cited by Politico, the data center has become one of the largest sources of pollution in a county where smog levels were already above safe limits. Residents of nearby communities, including Boxtown and Southaven, have complained of suffocating smoke, harmful fumes, and worsening health among children.
Transition to 1.2 GW
In response to mounting criticism, SpaceXAI announced a plan to address the problem. According to TechCrunch, the company intends to connect its artificial-intelligence facilities to a permanent 1.2-gigawatt natural-gas power plant.
Despite acknowledging the problem, the company will phase out the generators gradually. Most of the 69 turbines will continue operating, with their complete removal scheduled only for July 2027.
The company stated that it aims to remain a “good neighbor” and regularly adjusts the operation of its power network to reduce technological noise and the environmental burden on local residents.
Earlier, we reported on how SpaceX rockets are killing birds.
According to SpaceXAI