Musk's AI Venture Faces Green Energy Crossroads

xAI, Elon Musk's artificial intelligence company, has notified Memphis officials of plans to construct a solar power facility near its Colossus data center. The 88-acre project west and south of the facility aims to generate approximately 30 megawatts - enough to cover about 10% of the data center's massive energy appetite.

Environmental Concerns Cloud Project

The solar announcement arrives amid growing scrutiny of xAI's energy practices. According to the Southern Environmental Law Center, the company operates at least 35 natural gas turbines without proper permits - collectively generating over 400 megawatts while emitting more than 2,000 tons of nitrogen oxides annually.

"Since these turbines came online, we've seen asthma cases spike," says Maria Johnson, a community organizer in Boxtown. Air quality tests show nitrogen dioxide levels jumped nearly 80% near residential areas after xAI began operations.

Temporary Fixes Raise Eyebrows

Despite community protests, xAI maintains it needs the turbines until alternative power sources come online. Local regulators have granted temporary approval for 15 units through January 2027.

The company previously pledged to build renewable infrastructure including:

• A larger 100-megawatt solar array
• Matching battery storage capacity
• Round-the-clock clean energy solutions

Funding Questions Emerge

The solar project benefits from substantial federal backing. Developer Seven States Power Corporation secured $439 million in USDA support - including $414 million in interest-free loans. This marks a notable reversal from Trump-era cuts to clean energy programs.

Meanwhile in Mississippi, xAI continues expanding fossil fuel infrastructure with:

• Fifty-nine new natural gas turbines installed
• Eighteen classified as "temporary" (avoiding emissions monitoring)

The contrast between renewable pledges and fossil fuel dependence leaves many questioning Musk's environmental commitments.

Key Points:

• Solar Expansion: Planned Memphis facility would cover ~10% of data center needs
• Air Quality Impact: Unpermitted turbines linked to respiratory health declines
• Funding Windfall: $439M USDA package supports larger renewable projects
• "Temporary" Fossil Fuels: Dozens of unmonitored turbines remain operational