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On January 9, the EPA introduced updated regulations requiring air and construction permits for all gas turbines, including temporary ones. This ruling overrules an exemption previously upheld by the Shelby County Health Department for xAI's facilities. xAI has faced scrutiny for operating gas turbines at its Colossus data centers in Memphis and Southaven.

The EPA's decision aligns with federal law and aims to reduce nitrogen oxide emissions by up to 296 tons by 2032. xAI is using gas turbines to power its supercomputers, which require significant energy. Community activists have raised concerns about pollution from these turbines affecting local neighborhoods. The ruling impacts ongoing operations and future expansion plans at xAI's sites.