xAI, Elon Musk's AI company, has secured permits to operate 15 natural gas turbines at its Memphis data centre, despite facing legal threats over alleged Clean Air Act violations.

The Shelby County Health Department approved the generators, which can produce up to 247 megawatts, provided specific emissions controls are in place.

Environmental lawyers say xAI had already been running as many as 35 generators without permits. The Southern Environmental Law Center (SELC), acting on behalf of the NAACP, has accused the company of serious pollution and is preparing to sue.

Even under the new permit, xAI is allowed to emit substantial pollutants annually, including nearly 10 tons of formaldehyde - a known carcinogen.

Community concerns about the health impact remain strong. A local group pledged$250,000 for an independent air quality study, and although the City of Memphis carried out its own tests, the SELC questioned their validity.

The tests missed ozone levels and were reportedly conducted in favourable wind conditions, with equipment placed too close to buildings.

Officials previously argued that the turbines were exempt from regulation due to their 'mobile' status, a claim the SELC refuted as legally flawed. Meanwhile, xAI has recently raised$10 billion, split between debt and equity, highlighting its rapid expansion, even as regulatory scrutiny grows.