In June 2024, the Greater Memphis, Tennessee Chamber of Commerce announced a deal to host a new computing facility, and xAI built its "Colossus" data center in an old Electrolux factory, drawing questions about transparency, air quality, and water use. The Southern Environmental Law Center (SELC) has been a partner in litigation against xAI, gathering evidence on the company's unpermitted gas turbines and pushing state regulators to hold the company accountable under the Clean Air Act. On June 15, the Department of Justice filed a brief siding with the company, arguing that shutting down the turbines powering Colossus 2 would threaten national, economic and energy security, and claiming Grok is one of only four AI models supporting mission-critical operations on classified networks. The DOJ, xAI, and the state of Mississippi all asked the court to dismiss the suit, while SELC called the government’s argument “an unprecedented attack on the public’s ability to defend themselves from illegal pollution.”