US Representative Frank Pallone, the top Democrat on the House Energy and Commerce Committee, has formally demanded documents and answers from Elon Musk regarding the environmental and public health impacts of xAI's data center operations.

The request targets the artificial intelligence unit's infrastructure, specifically focusing on emissions and regulatory compliance at its facilities.

The inquiry comes as xAI faces mounting scrutiny over its rapid expansion.

The company is already entangled in legal action alleging that it installed and operated 59 natural gas turbines at its Colossus 2 data center project in Tennessee without securing the required federal permits.

Pallone's move signals a shift from purely judicial challenges to direct congressional oversight, raising the stakes for Musk's AI venture.

For investors, the development highlights the growing regulatory friction surrounding the power-hungry AI sector.