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DOJ says xAI’s unpermitted gas turbines threaten national, economic, and energy security

DOJ says xAI’s unpermitted gas turbines threaten national, economic, and energy security

July 23, 2026
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DOJ says xAI’s unpermitted gas turbines threaten national, economic, and energy security

The Department of Justice recently sided with xAI in a lawsuit that sought to block the company’s use of dozens of unpermitted natural gas turbines near its Memphis data centers, according to a Wired report.

The DoJ argued that if the NAACP—which filed the lawsuit in April—prevails, it would undermine American national, economic, and energy security by cutting off power to AI innovation that supports the Department of War’s military operations.

The Justice Department’s memorandum noted that Grok is one of four AI models supporting “mission-critical operations,” including recent strikes in Iran.

The NAACP first signaled its intent to sue xAI last June, aiming to stop the company from using “mobile” gas turbines at its Colossus and Colossus 2 data centers. Those efforts did not succeed, and Elon Musk’s AI company has since added more turbines, bringing the total to 57.

Since the turbines remain on trailers, xAI argues they are exempt from Mississippi air pollution regulations for one year. However, the Southern Environmental Law Center, which filed the lawsuit on behalf of the NAACP, contends that this practice still violates federal law, which states that trailer-mounted turbines can be considered stationary and thus subject to regulation.

The NAACP has stated that the region, already among the most polluted in the country, has experienced worsening air quality since xAI’s data centers became operational.

Since last year, the number of turbines at the data centers has more than doubled, leading to a corresponding increase in three major air pollutants: PM2.5, formaldehyde, and nitrogen oxides (NOx). All three are linked to asthma and cardiovascular disease. Formaldehyde exposure raises the risk of cancer, while PM2.5 has been associated with a range of health issues, from stroke to Alzheimer’s disease.

The company, now a division of SpaceX, is expected to purchase more generators in the coming months or years. In SpaceX’s IPO filing, the company stated it will buy an additional $2.8 billion worth of gas turbines to power its AI data centers over the next three years. Of that amount, at least $2 billion is earmarked for “mobile gas turbines.”

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