Posted by speckx 1 day ago
If we want to prevent such behaviour (and in case it's not clear from the above, I think we should) then we either need far more brutally punative financial penalties, or for executives to be held personally and criminally liable in such cases.
1. There isn't even a penalty. Journalists literally had to fly drones with thermal imaging to prove the gas turbines were indeed on. Then some non-profits had to use their own money to file a lawsuit
2. Corruption could get even the lawsuit kicked out:
> Enter the Federal Government and the Department of Justice, who pushed the courts to dismiss the suit as a matter of national security, stating that the xAI models were needed for "artificial-intelligence innovation that supports the Department of War’s military operations." So, residents are left without legal means of contesting these developments, barring individual claims and damages.
For example, if a data center is illegally running gas turbines, the penalty could be that the data center must be shut down for 3 years and no equipment can be removed from the data center during that time.
With financial penalties, there's always calculus on whether the penalty is high enough to deter the action. But the only reason they'd want to, for example, use illegal power generators at a data center is to run the data center. Losing access to 100% of the value of that data center for 3 years would make the calculus easy: it wouldn't be worth it for the companies. They'd lose the entire reason for doing it and so much of the capital investment in equipment as it depreciated during those 3 years.
With AI companies believing the market is worth trillions, it's hard to imagine a financial penalty high enough to deter illegal actions. It might need to be in the hundreds of billions - a level which they probably can't pay given their current resources and which governments wouldn't levy. Not that they'll essentially confiscate a data center and its hardware for multiple years as a penalty either.
If you take a different field of business, you can still imagine an organisation making the calculation that operation for a period of time --before their illegality was discovered and then acted upon by the authorities-- would still be worthwhile even if confiscation was the end result. (In some odd cases, this is close to the actual business model.)
If you want to deter hyper-rich companies, you could shift to fining them a meaningful percentage of their annual turnover or even their market capitalisation.
Something isn't really a big deal, it doesn't make sense to stick it to a company.
This is better at balancing the public interest of legal compliance against the public interest in the product the company provides.
It's basically the same trade-off with set in criminal punishments in general. If we made it it the death penalty for jaywalking or littering, we would have a lot less of it. Seems like a slam dunk right? Why don't we just do that?
Maybe harm * wealth. Rich people could be fined proportionally more than poor people. Rich companies (turnover, market cap?) could be fined proportionally more too.
This is the thing the HN crowd doesn't seem to get whenever a post is on here about data centers. They are often times doing outright illegal things and we simply don't have the mechanisms to punish "white collar crime" the way we punish other crime. The populist uprising against them is happening because people have tried everything else first
Most people believe that the law should mirror the ethics or morality of the society, and absent something clearly harmful, most people don’t understand why something with nobody clearly harmed should be illegal.
— Upton Sinclair
I never supported what Uber, either. Why would you assume anyone did?
If that were true, no one would go to jail for marijuana possession.
> TLDR: Corrupt crooks have sabotaged the normal careful legal-compromise route, so they are partly to blame when American communities seek hard-line measures instead.
Take Hood County where a Texas senator prevented them from considering a construction pause. Or West Virginia’s Power Generation and Consumption Act which completely banned local government oversight. Or Georgia’s HB 1059 Siting Mandates. I could go on and on but the point here is the playing field is not level. These data centers often have the power to completely skirt local zoning laws and regulation. And even when they do it illegally, there's rarely any consequences
Sure we do. We just don't use those mechanisms because the law doesn't move fast enough. That 7/2027 deadline was probably calculated as being not worth it to pursue legal damages for since court fights work slowly.
Now closing up those "stalling" loopholes... I don't know enough about the justice system to really make a judgement call on that.
Do we punish other crimes?
This is what I'm talking about. A non-profit and random journalists shouldn't be the ones holding them accountable in the first place. And a "lawsuit" is hardly accountability either. People need to go to prison for white collar crime.
> Enter the Federal Government and the Department of Justice, who pushed the courts to dismiss the suit as a matter of national security, stating that the xAI models were needed for "artificial-intelligence innovation that supports the Department of War’s military operations." So, residents are left without legal means of contesting these developments, barring individual claims and damages.
And this is the reason why a "lawsuit" isn't accountability. When the company can just pay some politicians to get it dismissed.
From everything I've seen the populist uprising is happening because 99% of the people shouting don't know anything about data centers other than "bad".
Just a reminder that when you're building a business, having land and a datacenter ready and cannot be switched on, with idle staff, costs the business money.
xAI could only draw 7-8MW from the grid and needed to run 10s of 1000s of H1000s. They shipped in 15 gas turbines as a more permanent onsite power plant while TVA/MLGW worked on expanding the grid supply to 150-300MW.
So you can get upset at musk all you want, but he has a business to run, and waiting for a full grid build out isn't practical.
> the illegal, unpermitted gas turbines they've been running at their Memphis Colossus data center
Illegal. These turbines are illegal. What xAI under Musk's direction is doing is illegal. A business that must break the law to be practical isn't a business, it's a criminal organization operating by hurting people (which is WHY it's illegal to run gas turbines like this), and both it and those running it must be held accountable.
You're arguing that it's fine to break the law if it would otherwise cost a business money. I don't accept that, and nobody else in this community should either.
No. Calling it illegal is just something people do because they hate musk. They fell into a loop hole and had no permits as they were technically allowed if they stayed in 1 spot for less than 364 days. EPA later determined they did not qualify and required permits, permits were later granted.
Musk operated in a grey area to run his business to avoid having an idle data center while other people dragged their feet.
I purposely cut off `illegal` because calling it `illegal` was bad faith to begin with. But it's not unexpected that musk haters will come out raising banners in protest.
I expect they have permission or dont need it.
At the very least, they have permission of the federal government which threw out all of the court cases against them.
Your analogy is breaking the law.
Oh, right! This one was cheaper because it wasn't ready. Cheaper is gooder for business.
And the government would have to pay to fight and might be on the hook if they lost.
And “clearly breaking the law” isn’t always clear; I don’t k ow anything about this particular case but it sounds like zoning or applying utility laws to non-utility companies or environmental regulations being used to make construction financially untenable. I don’t have a lot of sympathy for opposition to off-grid natural gas turbines; you don’t get much cleaner off grid power that works 24x7.
The government has no obligation to apply the law equally, although they are prohibited from applying the law unequally to achieve certain discriminatory aims.
I wish I lived in your world.
Your response was “I’d like to live in your world”, implying that you believe that it’s rarely the case that people can get government officials on the stand. That’s true for most people, but not true for people with deep pockets for lawyers.
I brought up Musk because Starlink was mentioned as the data center owner.
I do believe that you get more justice if you can afford to fight the government on its own terms in a courtroom. I don’t celebrate that.
Bring it on. Data center developers are getting government officials to sign NDAs as an end-run around the democratic process (https://www.nytimes.com/2026/08/04/opinion/ezra-klein-podcas...).
And that sounds like pro-datacenter corruption to me, and it's way better documented that the aspersions you're casting.
> there is very little grassroots opposition other than typical NIMBYism you see in all development projects
That's bullshit. About the only thing Americans agree on is that they hate datacenters: https://www.nytimes.com/2026/06/12/opinion/data-center-ai-de...:
> Americans hate data centers. They really, really hate them.
A Gallup poll from May found that 71 percent of Americans would oppose a data center being built in their area. In rural communities in Utah and North Carolina, regular people are organizing to stop data center construction, speaking out at public hearings and pressuring politicians for bans....
> According to polling by Heatmap News, more than half of all Americans support a national ban on data centers. The public seems to agree that data centers are giant, ugly, noisy, smelly altars to industrial-scale hostile architecture. In our virulently partisan country, this constitutes a rare show of consensus.
Anyway, happy to see the understanding reception here, I think it's worth continuing to drive home that these data centers have immediate impacts on the areas around them, which are disproportionately minorities and poor.
If you liked this article there's plenty more on my website, and feel free to ask any questions.
Taxi Pendants? Never heard of her
- Uber/Lyft
Gambling laws? Pssht
- Polymarkets
>xAI Ignores Laws And Profits: Rules For Thee, Not For Me
To what it is now, as if this is just healthy competition.
As the legendary PG once wrote: "What are you excessively curious about — curious to a degree that would bore most other people? That's what you're looking for"
That's a dangerous mentality. Comments can be removed or lagged, but never edited. I feel the same about headlines. It's ultimate an artistic choice and I don't like the feeling of someone altering a headline to soften the blow. Especially to a trillion dollar company.
>What are you excessively curious about — curious to a degree that would bore most other people?
Certainly not this need to control the narrative.
Comments that people don't like, which are clearly not just "spam" get flagged all the time. It's ridiculous
Are you trying to invent your own definition for self driving and quibble that supervision negates what the car is doing?
When they first started talking about it in the mid-teens, it was pitched as "read a book or take a nap"
That is not what Tesla is selling in 2026.
Are you?
You realize there are fully autonomous waymo cabs operating at "level 4" in several regions... today. Anybody can download the app and ride in them now.
Google didn't go around promising this "next year" every year for the last decade. They just went out and did the work to make the product work, and released it.
Starlink v3 satelites launch next month, the first starmind sats based nvidia chips sometime next year, large new factories for the needed solar panels are already half built outside of bastrop texas
Did Musk even need approval? At the time weren't they both non-public companies pretty much entirely controlled by him personally?
But if you're talking about Musk himself, I'm not gonna stop you.