Elon Musk's xAI has found itself in legal hot water over its use of polluting generators at a data center near Memphis, Tennessee. Now, it wants to buy even more of them—$2.8 billion worth over the next three years.

The company is specifically focusing on 'mobile gas turbines,' which it's currently being sued for operating without permits in one of America’s most polluted regions. The NAACP has sought an injunction against xAI's use of these turbines.

xAI is operating dozens of gas turbines, each with the potential to emit more than 2,000 tons of nitrogen oxides (NOx) pollution annually. These chemicals contribute to smog that can exacerbate asthma symptoms. The company claims some of its turbines are 'mobile' and don't need permits because they're still on their shipping trailers. However, federal regulations state that even mobile generators over a certain size are subject to air-pollution laws.

SpaceX acknowledges the risks in its IPO filing, stating that natural gas and gas turbine technology is crucial for powering data center operations. It warns that injunctions or rescinded permits 'would adversely affect our AI business.' As xAI expands its use of these turbines, questions arise about balancing environmental concerns with technological advancement.