xAI's unpermitted turbines won't be fully removed until July 2027
Original: SpaceX won’t remove all of xAI’s unpermitted turbines for another year
Why This Matters
The case highlights growing tensions between AI infrastructure buildout, environmental regulations, and environmental justice in underserved communities.
SpaceX announced on July 31, 2026 that 69 unpermitted gas turbines powering xAI's Colossus data centers near Memphis will not be fully removed until July 2027, as the company transitions to a permanent 1.2 GW natural gas plant in Mississippi.
SpaceX confirmed it is currently operating 69 gas turbines to power the Colossus data centers near Memphis, Tennessee. The company states these turbines are permitted-exempt because they remain on their delivery trailers, but federal regulators dispute this, citing the turbines' size and usage as requiring permits. The turbines have the potential to emit over 2,000 tons of NOx per year in one of the most polluted regions in the U.S. The NAACP and Southern Environmental Law Center have filed suit against xAI over the issue. In June 2026, the Department of Justice sided with SpaceX, characterizing the turbines as a matter of 'national, economic, and energy security.' SpaceX, which acquired xAI in February 2026, is building a permanent replacement power plant consisting of 41 gas turbines ranging from 16.48 MW to 50 MW, per Mississippi state permits. The company also disclosed plans to spend $2.8 billion on gas turbines for data centers over the next three years in its IPO filing. Separately, Elon Musk's earlier acquisition of APR Energy — a temporary gas power specialist — appears unrelated to the new Colossus plant, suggesting its turbine fleet may be earmarked for an unannounced project.