SpaceXAI to remove unpermitted turbines by 2027, continues AI expansion

SpaceXAI agrees to remove 69 unpermitted gas turbines from a Tennessee data center by July 2027, amid a NAACP lawsuit and federal involvement, while continuing its AI infrastructure expansion.

This article was drafted with AI assistance from multiple sources and was reviewed and approved by a human editor before publication.

SpaceXAI has agreed to remove all 69 unpermitted gas turbines from its data center near Memphis, Tennessee, by July 2027. The removal will begin in August 2026 and is expected to be completed by that deadline, according to an agreed order with the Mississippi Department of Environmental Quality. The turbines will be replaced by a new 1.2-gigawatt power plant, which is being permitted under the Clean Air Act in Mississippi.

The agreement comes amid a lawsuit filed by the NAACP in April 2026, alleging Clean Air Act violations stemming from the unpermitted turbines. The lawsuit claims that emissions from the turbines have exposed local residents to hazardous chemicals and pollution, leading to health problems such as asthma, respiratory diseases, heart failure, and cancer. In response, SpaceXAI says that current data shows local air quality meets or exceeds EPA standards.

The Justice Department filed a motion to dismiss the NAACP lawsuit in June 2026, but the case is moving forward as of this writing. The legal proceedings are separate from the removal agreement, which is a consent order with state regulators.

Despite the regulatory and legal challenges, SpaceXAI continues to expand its AI infrastructure. The company, formed after SpaceX acquired xAI in February 2026, has signed agreements to offer data center capacity to Anthropic and Google. This expansion suggests that the company is moving forward with its AI ambitions even as it addresses environmental compliance issues.