The national, state and local branches of the NAACP are demanding that the Shelby County Health Department issue an emergency shutdown order for xAI’s controversial supercomputer facility in South Memphis, citing a long list of alleged environmental violations and a breakdown in transparency.
The May 29 letter, addressed to health department Director Dr. Michelle Taylor and the MLGW Board of Commissioners, accuses both agencies of enabling xAI to operate “without constraint or restraint,” despite the company’s use of dozens of methane gas turbines that the NAACP says were never properly permitted.
The historic civil rights organization claims the situation violates the Clean Air Act and the Tennessee Open Meetings Act and undermines the health of nearby residents — many of whom live in the historically Black neighborhood of Boxtown.
“The message that SCHD and MLGW have sent to the community is that billionaires matter more than the taxpayers and residents who live there,” the NAACP wrote.
But Monday afternoon, MLGW issued a point-by-point rebuttal, dismissing the NAACP’s claims as “baseless,” “inflammatory” and demonstrating a “complete lack of understanding” of MLGW’s legal role.
“We must provide utilities to customers in our service territory in a non-discriminatory manner,” wrote MLGW President Doug McGowen in a letter addressed to NAACP officials. “MLGW has no role whatsoever in authorizing, governing, supervising or monitoring xAI’s use of gas turbines.”
McGowen emphasized that MLGW is a municipal utility governed by federal energy law and does not regulate air quality. That responsibility, he said, falls to the health department, the Tennessee Department of Environment and Conservation and the U.S. Environmental Protection Agency (EPA).
The core of the NAACP’s argument lies in its assertion that xAI brought in more than 35 methane gas turbines to power its data center operations without first obtaining the permits required under the Clean Air Act’s New Source Review program. Further, the group argues, the utility and public health agencies failed to enforce basic transparency requirements around public meetings and environmental oversight.
In their letter, the NAACP claims SCHD knew about xAI’s operation as early as June 2024, when residents began raising questions, but failed to act. Instead, they argue, the agency deferred to the federal EPA while allowing the company to operate unchecked for nearly a year.
MLGW, in turn, pointed to its public outreach efforts, including a Q&A with the Memphis City Council in August 2024 and a dedicated website providing updates about xAI. It also reiterated its leadership role in developing an $80 million wastewater recycling facility intended to keep xAI, TVA and Nucor Steel off the Memphis Sand Aquifer.
Still, public trust remains fragile. Recent community hearings, including a charged public forum at Fairley High School, have been marked by outrage and skepticism, with residents chanting, “We don’t want it!” and booing xAI’s representative off stage. Several residents questioned the legality of the turbines. Others simply doubted the premise that any fossil fuel-driven facility could be called clean.
Taylor, of the health department, has not publicly responded to the NAACP’s letter. But in a May 16 update on the SCHD website the department said it was still reviewing more than 1,700 public comments on xAI’s permit request and had not yet made a final decision.
Taylor, who recently announced her departure from the agency in August to lead the Baltimore City Health Department, has not indicated whether a ruling will be made before her exit.
Meanwhile, community advocates continue pressing for accountability, and the NAACP has not backed down. The letter concludes with a call for immediate penalties, a full audit of emissions sources on and around the site, and the suspension of operations until legal compliance is ensured.
