SpaceX won’t remove all of xAI’s unpermitted turbines for another year

SpaceX to Keep Unpermitted xAI Data Center Turbines Running Until Mid-2027 Amidst Environmental Scrutiny

In a developing story highlighting the intense energy demands of cutting-edge artificial intelligence, SpaceX, the parent company of xAI, has announced that it will not fully remove the 69 unpermitted gas turbines powering xAI's Colossus data centers until July 2027. This extended timeline comes amidst mounting legal pressure and environmental concerns regarding the operations of these temporary power sources near Memphis, Tennessee, and Southaven, Mississippi.

The situation underscores the significant infrastructure challenges and regulatory complexities faced by companies racing to build the colossal computing power required for advanced AI models like xAI's Grok. While a permanent 1.2 gigawatt (GW) power plant is under construction to support the massive energy needs of the Colossus supercomputer, the reliance on unpermitted turbines has drawn sharp criticism from environmental justice advocates.

The Colossus Challenge: Powering the World's Most Powerful AI Supercomputer

xAI's Colossus supercomputer, located in Memphis, Tennessee, is a formidable force in the AI landscape. As of March 2026, it was considered the world's most powerful AI supercomputer, boasting over 275,000 H100-equivalent chips and consuming a staggering 352.4 megawatts (MW) of power – comparable to the electricity usage of a city of 250,000 people. The system's power consumption has continuously escalated, from an initial 150 MW to 250 MW by June 2025, and then to 280 MW by June 2025. Plans for expansion envision Colossus scaling to one million GPUs, with power requirements potentially ballooning to an estimated 1,400 to 1,960 MW, necessitating robust and dedicated energy solutions.

To meet these immense and rapidly growing power demands, xAI initially deployed a fleet of gas turbines. These units served as interim or supplemental generation as the local grid initially had insufficient capacity. While an air permit was granted in July 2025 for up to 15 turbines generating around 247.2 MW for the Colossus 1 site, reports indicate that the company significantly expanded its use of these "temporary, mobile" turbines for its Colossus 2 data center.

Regulatory Tensions and Environmental Lawsuits

The core of the current dispute revolves around the operation of 69 gas turbines, many of which are alleged to be running without the necessary federal clean-air permits. Environmental groups, including the Southern Environmental Law Center (SELC) and Earthjustice, along with the NAACP, have filed multiple lawsuits against xAI. They argue that xAI is violating the Clean Air Act by installing and operating these polluting gas-fired turbines without obtaining proper permits.

These organizations highlight the significant environmental and public health risks posed by the unpermitted turbines. The power plant in Southaven, Mississippi, for example, has the potential to emit over 1,700 tons of smog-forming nitrogen oxides (NOx), 180 tons of fine particulate matter, 500 tons of carbon monoxide, and 19 tons of formaldehyde annually. These emissions are particularly concerning for the surrounding communities, which are predominantly Black and already face disproportionately high rates of lung disease and elevated exposure to air toxics.

Critics also point to a loophole that allowed trailer-mounted turbines to be considered "temporary mobile sources," exempting them from standard Clean Air Act permitting if not kept in one place for more than 364 days. However, the EPA closed this loophole in January 2026. Despite this, state regulators in Mississippi and Tennessee have taken the position that temporary turbines can run for a year without clean air permits, a reading that the NAACP disputes under EPA rules.

SpaceX's Response and the Path Forward

SpaceX, which acquired xAI in February 2026, creating a combined entity valued at $1.25 trillion, has acknowledged the situation. The company has reached an agreement with the Mississippi Department of Environmental Quality, establishing a fixed timeline for the removal of all 69 temporary, mobile turbines. While xAI states it is "rapidly removing these mobile turbines," the full process is expected to take until July 2027 to complete.

In the interim, SpaceX is constructing a permanent 1.2 GW power plant, which is designed to provide the necessary headroom for xAI's expanding operations without relying on utility companies that cannot provision gigawatt-scale connections on a startup timeline. This new plant, combined with existing on-site turbines and local grid access, aims to ensure continuous power for the Colossus supercomputer. Permit documents from the state of Mississippi indicate this new plant will include 41 permanent gas turbines, which appear to differ from the 69 turbines currently in use.

Department of Justice Intervention and Broader Implications

Adding another layer of complexity to the legal battles, the U.S. Department of Justice (DOJ) has intervened in the Clean Air Act lawsuit, arguing that shutting down the gas turbines at xAI's Southaven data center would threaten U.S. national security. The DOJ's filing in June 2026 did not dispute the lack of permits but contended that national-security interests outweigh the enforcement claim. The Department of Defense supported this position, stating that xAI's Grok is one of only four frontier AI models cleared for mission-critical operations on classified networks.

This intervention raises significant questions about the balance between environmental regulations and the perceived national security importance of advanced AI infrastructure. It potentially sets a precedent where private AI companies could seek to bypass environmental permitting requirements under the guise of national security. A hearing on the preliminary injunction in the lawsuit is set for late August 2026.

The situation with xAI's data centers highlights a growing tension surrounding the AI boom. While AI is a source of innovation, the infrastructure it demands places substantial pressure on local energy grids and communities. The need for massive amounts of electricity and water for cooling systems creates a direct link between AI development and environmental impact. As AI companies continue to expand their computing capacity, the regulatory frameworks governing energy demand are being rigorously tested, and communities are increasingly organized in demanding accountability for environmental costs.

Frequently Asked Questions

What is the core issue with xAI's data center power?

The main issue is that xAI has been operating 69 gas turbines to power its Colossus data centers in the Memphis area without obtaining the necessary federal clean-air permits. This has led to environmental lawsuits and concerns over air pollution in nearby communities.

When will the unpermitted turbines be removed?

SpaceX, xAI's parent company, has agreed to a timeline with the Mississippi Department of Environmental Quality to remove all 69 temporary, mobile turbines by July 2027. This removal will coincide with the commissioning of a new, permanent 1.2 gigawatt power plant.

Why is the Department of Justice involved in the lawsuits?

The U.S. Department of Justice has intervened in the lawsuits on behalf of xAI, arguing that shutting down the turbines would threaten U.S. national security. They claim that xAI's Grok AI model is crucial for mission-critical operations on classified networks.

What are the environmental concerns surrounding these turbines?

Environmental groups and the NAACP are concerned about the significant air pollution emitted by the turbines, including nitrogen oxides, particulate matter, carbon monoxide, and formaldehyde. These emissions are believed to disproportionately affect predominantly Black communities in the area, which already face elevated health risks.