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Data centers must follow clean air rules with their large generators, EPA says
On Thursday, the Environmental Protection Agency issued a final rule requiring data-center power generators to comply with the Clean Air Act and declared xAI in violation for operating large turbines without permits.
Developers classified trailer-mounted methane gas turbines as 'non-road engines' to avoid permits, prompting officials to review the rule in December 2024 amid hyperscale data centers' growth.
At the Memphis site, xAI operates 12 turbines but previously ran as many as 35 while only 15 were permitted, and Solaris Energy Infrastructure said promised pollution controls were not installed.
The rule requires large temporary gas turbines to meet federal Clean Air Act limits, making permitting a federal responsibility that could slow xAI expansion in Memphis, while environmental advocates including the NAACP said they would sue and urged local officials to act.
Last year, Residents of Boxtown, South Memphis testified about worsening smog and health impacts, while xAI, which raised $20 billion, faces investigations and SEI’s stock rose in recent months.