Business
xAI’s Memphis Data Center Sparks Outrage Over Unpermitted Gas Turbines Polluting Nearby Neighborhoods
MEMPHIS, Tenn. — Elon Musk’s artificial intelligence company xAI is facing sustained legal and community backlash over dozens of unpermitted gas turbines powering its massive Colossus supercomputer facilities in the Memphis metropolitan area, with civil rights and environmental groups arguing the company has repeatedly skirted air quality regulations while pumping pollutants into neighborhoods already struggling with poor air quality.
The controversy centers on two facilities: Colossus 1, located in South Memphis, and the newer Colossus 2, situated just south of the Tennessee-Mississippi state line in Southaven, Mississippi. According to the Southern Environmental Law Center, xAI began operations at Colossus 1 in June 2024 using as many as 35 unpermitted gas turbines to power the facility, installed without obtaining the necessary preconstruction or operating air permits required under federal and local regulations.
SELC first raised the alarm in June 2025, submitting a formal notice of intent to sue xAI on behalf of the NAACP for violations of the Clean Air Act, a required legal step that must precede any such lawsuit by 60 days. “Over the past year, xAI has installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits,” SELC wrote in its letter to the company at the time, according to TechCrunch. The organization noted that the turbines had the potential to emit more than 2,000 tons of nitrogen oxides annually, a group of chemicals that contribute to smog formation.
Memphis already carried a troubling public health backdrop before Colossus 1 began operating. According to SELC’s reporting, the Asthma and Allergy Foundation of America designated Memphis the nation’s “asthma capital” in 2024, citing high rates of emergency room visits and deaths tied to the condition, while the American Lung Association gave the broader region an “F” grade for ozone pollution in 2025.
Despite mounting public pressure and legal action, xAI’s turbine operations expanded rather than contracted. The company removed its unpermitted turbines at Colossus 1 only after SELC sent its formal notice of intent to sue on behalf of the NAACP. However, according to SELC’s April 2026 update, xAI officials indicated the company planned on “copying and pasting” its earlier unlawful turbine strategy to power its newer Colossus 2 facility in Southaven.
That warning proved accurate. SELC and Earthjustice filed a new lawsuit on April 14, 2026, on behalf of the national NAACP and its Mississippi State Conference, this time targeting 27 unpermitted gas turbines discovered operating at Colossus 2. “We cannot allow for companies to promise a better future while pumping harmful chemicals into the air we breathe. We demand that xAI follow the Clean Air Act and stop operating these unpermitted turbines to protect the people of Southaven,” SELC said in a statement announcing the litigation.
By July, reporting from Technology.org indicated the number of unpermitted turbines running at Colossus 2 had grown further still, to 59, operating separately from a set of 41 permanent gas-fired turbines for which Mississippi regulators had issued a permit in March, following the state’s only public hearing on the project. Nicholas Mailloux, a postdoctoral researcher at the University of Wisconsin-Madison who studies air quality, assessed the scale of the facility’s emissions in stark terms. He said the nitrogen oxide output attributable to roughly half the plant would put it “up there with some of the heaviest polluting natural gas power plants across the entire country,” ranking on par with the top 25 gas plants nationally for nitrogen oxide emissions, based on EPA data on actual emissions.
xAI and Mississippi state regulators have defended the unpermitted turbines in court filings by arguing they qualify for an exemption because they are classified as mobile equipment intended to operate on site for less than a year. “MDEQ has determined that portable/temporary turbines do not require an air permit,” the Mississippi Department of Environmental Quality told reporters, according to Technology.org.
The health impacts alleged in the litigation extend beyond air quality metrics to specific community accounts. According to Tech Insider, pediatric emergency room visits for respiratory distress in the 38109 ZIP code, which sits near the Colossus facilities, climbed 14% year over year between 2024 and 2025, the first full year Colossus 1 was operational. Easter Knox, a 64-year-old Whitehaven resident and named plaintiff in the litigation, described the direct impact on her family in a statement released by the NAACP. “My grandson Marcus has had three asthma attacks since November,” Knox said. “His school is four-tenths of a mile from those turbines. We don’t need another AI model. We need to breathe.”
Independent air quality monitoring data cited in the litigation has bolstered those community accounts. According to Tech Insider, a dataset compiled by Memphis Community Against Pollution using portable air sensors between January and March 2026 showed daily one-hour nitrogen dioxide readings exceeding 100 parts per billion on 41 of 89 monitored days at three locations within a mile of the turbine yard, levels the litigation’s supporting exhibits characterize as significantly elevated.
SELC Senior Attorney Amanda Garcia has pointed to a broader pattern of inconsistency and lack of transparency surrounding the facility’s operations. “The back-and-forth about how many gas turbines are at the xAI data center and how many are running really underscores the lack of accountability surrounding this facility,” Garcia said. Fellow SELC Senior Attorney Patrick Anderson characterized the company’s conduct more directly as unlawful. “xAI’s decision to install and operate dozens of polluting gas turbines without any permits or public oversight is a clear violation of the Clean Air Act,” Anderson said.
Local government has responded to the growing controversy with at least one concrete policy step. According to SELC’s timeline of the dispute, following months of advocacy from community groups, the Memphis City Council approved an ordinance allocating 25% of tax revenue generated from xAI’s operations to communities located closest to the facilities.
Neither xAI, the Mississippi Department of Environmental Quality, nor the Environmental Protection Agency has responded to questions regarding the pollution’s specific impact on communities of color living near the facilities, according to Technology.org’s reporting. As the litigation continues to move through the court system, the case is expected to test how existing environmental regulations, many written well before the current wave of AI-driven data center construction, apply to an industry that critics argue has expanded its physical infrastructure footprint faster than regulators have been able to keep pace with enforcement.
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Officials in YALA province are tightening up security measures after a series of incidents disrupted several locations across the three southern border provinces overnight.
Authorities have intensified security measures across the southern border provinces in response to rising concerns over illegal activities and cross-border threats. Enhanced patrols, including increased personnel and advanced technology, are now deployed to monitor and secure these critical areas. Local law enforcement agencies are collaborating with national security forces to ensure a cohesive approach to maintaining regional stability and safety.
In addition to stricter surveillance, authorities are implementing more rigorous inspections at checkpoints and border crossings. These measures aim to prevent illegal immigration, smuggling, and potential infiltration by criminal networks. The enhanced scrutiny serves as both a deterrent to unlawful activities and a reassurance to residents affected by such challenges, fostering a sense of security and confidence within border communities.
Community engagement is also a cornerstone of the tightened security strategy. Authorities are working with local leaders and residents to strengthen communication channels and encourage the reporting of suspicious activities. By fostering cooperation and trust between communities and law enforcement, authorities hope to create a united front against threats and maintain the integrity of the southern border provinces. This comprehensive approach highlights the importance of collaboration and vigilance in safeguarding national security.
I am a specialist in Asian equities after having been a sellside analyst for 13 years. In addition, I have also spent time covering US hardware and semiconductor stocks on the sellside. Within Asia, I have covered the casino, automotive, industrial, consumer and technology sectors. I have also worked on the buyside as a fund manager in long only and as an analyst in hedge funds all covering Asian equities where I have developed a keen understanding of Asian companies and economies with a focus on China. From a global equities perspective, I enjoy covering companies globally by examining key metrics such as financial statements strength, valuation upside, and conducting proper analysis of the competitive advantages of the company. Throughout my career, I have found and written on undiscovered small cap companies which have increased in equity value by multiple times. I would like to write for Seeking Alpha where my goal is to help investors cut through the noise and to focus on fundamentals and the company’s competitive outlook instead of the momentum trade.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Last week, the BSE benchmark Sensex declined 468.42 points, or 0.60 per cent, and the NSE Nifty dipped 114 points, or 0.46 per cent.
“Indian equity markets ended the week on a cautious note, extending their recent corrective phase as elevated crude oil prices, rising global bond yields and persistent geopolitical uncertainty weighed on investor sentiment,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
The valuation of Bharti Airtel dropped Rs 28,052.96 crore to Rs 12,14,963.15 crore, the most among the top-10 firms.
Tata Consultancy Services (TCS) faced an erosion of Rs 22,070.34 crore from its valuation, which stood at Rs 8,31,436.51 crore.
The market capitalisation (mcap) of the State Bank of India declined Rs 20,861.2 crore to Rs 9,64,968.76 crore and that of Hindustan Unilever fell Rs 16,975.79 crore to Rs 4,73,912.56 crore.
However, the valuation of Life Insurance Corporation of India (LIC) jumped Rs 12,650 crore to Rs 5,35,980.31 crore.The mcap of Reliance Industries surged Rs 8,119.53 crore to Rs 17,78,175.59 crore and that of Larsen & Toubro climbed Rs 3,487.83 crore to Rs 5,62,460.94 crore.
The market valuation of Bajaj Finance edged higher by Rs 3,424.28 crore to Rs 6,80,621.62 crore.
ICICI Bank added Rs 752.47 crore taking its mcap to Rs 10,18,330.45 crore.
The mcap of HDFC Bank went up Rs 356.95 crore to Rs 11,21,159.05 crore.
Reliance Industries remained the most valued firm, followed by Bharti Airtel, HDFC Bank, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever. PTI
The inflow comes after FPIs invested Rs 20,200 crore in July, marking a sharp turnaround from four consecutive months of heavy selling and signalling renewed confidence in Indian equities.
FPIs had withdrawn Rs 49,340 crore in June, Rs 32,963 crore in May, Rs 60,847 crore in April and a massive Rs 1.17 lakh crore in March. Prior to this selling streak, they had invested Rs 22,615 crore in February, according to CDSL data.
Despite the recent buying, foreign investors have remained net sellers in Indian equities in 2026, withdrawing around Rs 2.3 lakh crore so far — exceeding the Rs 1.66 lakh crore outflow registered during the entire 2025.
“The factors that are driving the FPIs back to the Indian market are: earnings growth revival as reflected in Q1 results, FPI withdrawal from the ‘chip trade’, rupee stability and the impressive growth prospects of companies in the broader market,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said.
FPIs are not buying attractively valued leading large banking or IT stocks; instead they are selectively buying mid-caps despite elevated valuations, he added.
In the coming week, investors will closely track crude oil price movements and developments in the ongoing US-Iran geopolitical tensions for further direction in the market, Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking, said.
Foreign investor interest has also extended to the debt market. They invested Rs 852 crore in debt through the Fully Accessible Route (FAR), while they pulled out Rs 995 crore through the general route during the period under review. PTI
Business
Texas Man Sentenced to Prison for Shooting Bald Eagle, Hiding Injured Bird Under Garage Tarp
HOUSTON — A Porter, Texas, man was sentenced to 14 days in federal prison and ordered to pay a $5,000 fine Friday after pleading guilty to shooting and killing a federally protected bald eagle in his backyard, then attempting to hide the wounded bird beneath a tarp in his garage.
Santos Guerrero, 43, was sentenced by U.S. Magistrate Judge Peter Bray following his guilty plea earlier this year, according to the U.S. Attorney’s Office for the Southern District of Texas. Guerrero pleaded guilty on May 14, nearly two years after authorities said he shot the eagle at his home on Oct. 11, 2024.
According to federal prosecutors, authorities initially responded to the scene after receiving reports of the shooting. Investigators reviewed video footage showing the eagle being shot and falling from a tree, and they subsequently traveled to Guerrero’s home, where they identified the same tree captured in the footage. Investigators eventually located the injured bird hidden beneath a tarp inside Guerrero’s garage.
Prosecutors said Guerrero later lied to investigators about the incident. The court reviewed both surveillance video and body camera footage documenting the eagle both before it was shot and after it was subsequently discovered in Guerrero’s garage.
The eagle was transported to an animal hospital following its discovery, but veterinarians ultimately made the decision to euthanize the bird due to the severity of its injuries. According to federal prosecutors, a necropsy determined that the bullet had significantly damaged one of the eagle’s wings, while its subsequent fall from the tree caused additional serious injuries, including liver fractures, internal bleeding and a broken leg.
Although bald eagles have not been classified as an endangered species since 2007, the birds remain federally protected under the Bald and Golden Eagle Protection Act, a law that prohibits killing or possessing bald and golden eagles without proper authorization. Those protections extend beyond the birds themselves to also cover eagle parts, nests and eggs, meaning violations of the law can carry significant federal penalties regardless of an eagle’s current conservation status.
When Guerrero entered his guilty plea in May, prosecutors indicated he faced a potential sentence of up to one year in federal prison, along with a maximum fine of $100,000. Judge Bray’s ultimate sentence of 14 days in prison alongside the $5,000 fine fell considerably below that maximum potential penalty.
Following Friday’s sentencing, Guerrero remains free on bond. According to the U.S. Attorney’s Office, he will be required to voluntarily surrender to a Federal Bureau of Prisons facility that has not yet been determined, a common arrangement in federal cases involving relatively short custodial sentences, allowing the defendant to report to a designated facility on their own rather than being taken into custody immediately following sentencing.
The Bald and Golden Eagle Protection Act, first enacted in 1940 and later amended to include golden eagles, has served as one of the primary federal legal tools used to prosecute individuals who kill or harm the birds, even in cases, such as Guerrero’s, where the shooting occurred on the defendant’s own private property. The law reflects the bald eagle’s enduring status as a national symbol of the United States, a designation that has continued to afford the species legal protection even after its formal removal from the federal endangered species list nearly two decades ago, a delisting that reflected a significant conservation success following decades of population decline driven largely by the pesticide DDT and habitat loss throughout the 20th century.
Federal wildlife protection cases involving bald eagles are prosecuted through the U.S. Fish and Wildlife Service’s law enforcement division, working in coordination with U.S. Attorney’s offices across the country. Penalties for violations can vary significantly depending on the specific circumstances of a case, including whether a defendant is found to have acted knowingly, whether the bird’s death was accidental, and whether any additional conduct, such as Guerrero’s alleged false statements to investigators, factors into how prosecutors approach sentencing recommendations.
Cases involving the killing of protected bald eagles periodically draw significant public attention given the bird’s status as a national symbol, and federal prosecutors have continued to pursue charges against individuals found to have violated the Bald and Golden Eagle Protection Act in various parts of the country in recent years, reflecting the law’s ongoing role in protecting the species even outside its formal designation as endangered or threatened.
As of Friday’s sentencing, the case against Guerrero has concluded with his federal prison term and fine, closing out a legal process that spanned nearly two years from the original October 2024 shooting to his eventual guilty plea and sentencing. The U.S. Attorney’s Office for the Southern District of Texas has not indicated whether Guerrero faces any additional state-level charges connected to the incident beyond the federal case addressed in Friday’s sentencing hearing.
I like how a single event can ripple through markets and trigger a chain of reactions. That curiosity is what led me to study macroeconomics and eventually shape the way I invest. I have five years of experience in the investment field and an MBA in Macroeconomics and Portfolio Management. My strategy blends a top-down view of the global economy with a bottom-up look at individual companies. Start by spotting strong economies with good currenncies using macro data and statistical tools, then narrow down the sectors that are likely to perform well over the next few months. From there, I focus on quality companies with solid momentum and consistent results. I’m also a regulated investment analyst in Brazil.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I intend to wait a few days after an article gets published before initiating a long position.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Canadian prime minister says U.S. sought to restrict Canada’s ability to strike trade deals with other countries.
President Donald Trump lashed out at Canada early Sunday in his first public comments since trade negotiations between the two countries collapsed, accusing Ottawa of wanting the “benefits of being a State, without being one.”
“Canada wants the benefits of being a State, without being one!!!” Trump wrote on Truth Social.
“They have also charged our great farmers, for many years, massive amounts of Tariffs,” he added. “No more!!!”
The comments come a day after Canadian Prime Minister Mark Carney suspended negotiations with the U.S. and ordered Canada’s trade team back to Ottawa as Trump’s 50% tariffs on roughly $20 billion worth of Canadian imports took effect early Saturday.
President Donald Trump and Canadian Prime Minister Mark Carney have traded criticism following the collapse of U.S.-Canada trade negotiations. (Anna Moneymaker/Getty Images / Getty Images)
For its part, Canada has vowed to retaliate.
Carney said Friday that Ottawa plans to match the U.S. tariffs “dollar for dollar,” with the levies targeting multiple sectors, including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
The duties are set to take effect the Tuesday after Labor Day, Sept. 8.
The prime minister on Saturday accused Washington of making a last-minute “power play,” saying the U.S. sought to restrict Canada’s ability to negotiate trade agreements with other countries.
President Donald Trump lashed out at Canada in his first public comments since trade negotiations between the two countries collapsed, accusing Ottawa of wanting the “benefits of being a State, without being one.” (Shawn Thew/EPA/Bloomberg/Getty Images)
“It’s a power play,” Carney said. “It becomes a question of sovereignty.”
According to Carney, trade talks broke down after the U.S. introduced new demands involving Canada’s other trading relationships, its auto sector and protections for Canadian culture and the French language.
“In short, they asked too much, and they offered too little,” Carney said.
The Trump administration has disputed Carney’s version of events, arguing that Canada walked away from terms the two countries had already agreed to.
Canadian Prime Minister Mark Carney greets U.S. President Donald Trump at the official welcome ceremony during the G7 Leaders’ Summit on June 16, 2025 in Kananaskis, Alberta. (Chip Somodevilla/Getty Images / Getty Images)
“Our interest is in protecting American workers and protecting American supply chains. We’ve been offering to bring the Canadians along on that path, really to cut the tariffs on them on steel, on autos, even lumber, things that are sensitive for them,” U.S. Trade Representative Jamieson Greer said Saturday on “Fox & Friends Weekend.”
“And they’ve always had the best deal, and they still would have an even better deal, but they didn’t want that,” he continued.
Greer said no additional trade negotiations with Canada have been scheduled.
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FOX Business’ Brittany Miller and Fox News Digital’s Madison Colombo contributed to this report.
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