Musk’s xAI is being sued over its data center generators. Now, it’s buying $2.8B more.

xAI is expanding its data center power infrastructure with a $2.8B turbine purchase over three years, despite ongoing litigation from the NAACP over unregulated gas generators that violate federal emissions standards and contribute significantly to regional air pollution. This expansion reveals critical regulatory and operational risks for AI infrastructure scaling, with the company operating 46 turbines against only 15 permits granted, creating exposure to injunctions that could disrupt AI business continuity. Technology leaders should recognize that aggressive infrastructure scaling without regulatory compliance can create existential threats to mission-critical AI operations and that sustainable power solutions are becoming a competitive and risk-management imperative.