<ul data-eligibleForWebStory="true">Elon Musk's AI firm, xAI, is facing legal action for running 35 gas turbines without permits at its Memphis site, violating the Clean Air Act.The NAACP and SELC allege environmental racism, demanding penalties and relief for affected communities in South Memphis.SELC issued a 60-day legal notice to xAI after claiming the company operated turbines without proper permits.Colossus, the data center, is located in a predominantly Black neighborhood suffering from poor air quality.SELC mentioned xAI's failure to use pollution-reducing technologies and obtain required permits for the turbines.The NAACP plans legal action, seeking court-ordered relief, civil penalties, and legal fees to protect the community.Despite community backlash, xAI plans to build a second, larger data center in Memphis called Colossus 2.The demand for data centers is increasing due to AI and cloud computing growth, with energy usage projected to double or triple by 2028.Global investments in the data center sector are estimated to reach $6.7 trillion by 2030.Tech companies like xAI are facing environmental concerns, potentially influencing how data centers are powered in the future.