SpaceX announced on Thursday that it will continue operating unpermitted gas turbines powering its xAI data centers near Memphis, Mississippi, until July 2027, as it transitions to a permanent 1.2 gigawatt natural gas power plant. The company currently operates 69 gas turbines at the Colossus data center complex, many running for months without required environmental permits. The NAACP and the Southern Environmental Law Center have filed lawsuits over the turbines, citing air quality concerns in a region among the most polluted in the U.S. The turbines could emit more than 2,000 tons of smog-forming nitrogen oxides annually. SpaceX, which acquired xAI in February, argues the turbines are exempt because they remain on trailers, but federal rules require permits based on size and operational use. Last month, the Department of Justice sided with SpaceX, citing “national, economic, and energy security.” SpaceX is building a new power plant with 41 gas turbines ranging from 16.48 megawatts to 50 megawatts, per Mississippi permit documents. In its IPO filing, SpaceX stated plans to purchase $2.8 billion worth of gas turbines over the next three years. Earlier this year, Elon Musk acquired APR Energy, a temporary power specialist, whose turbine fleet differs from those in the new permits, suggesting possible other projects. The case highlights conflict between AI data center expansion and environmental regulations.