DOJ Backs xAI in Lawsuit Over Unpermitted Gas Turbines Near Memphis Data Centers

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The US Department of Justice on Monday sided with xAI in a lawsuit that sought to stop the company's use of dozens of unpermitted natural gas turbines near its Memphis data centers, according to a report by Wired. The DoJ said if the NAACP, which filed the lawsuit in April, prevails, the result would undermine 'American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War's military operations.' The memorandum filed by the Justice Department said that Grok is one of four AI models that support 'mission-critical operations,' such as its recent strikes in Iran. The NAACP started telegraphing its intent to sue xAI last June, seeking to end the company's practice of using 'mobile' gas turbines at its Colossus and Colossus 2 data centers.

Those efforts failed, and Elon Musk's AI company has since added more turbines, bringing the total to 57. Because the turbines have remained on trailers, xAI claims that they are exempt from Mississippi air pollution regulations for one year. The Southern Environmental Law Center, which filed the lawsuit on behalf of the NAACP, says that the company's use still violates federal law, which states that trailer-mounted turbines can be considered stationary and are therefore subject to regulation.

The NAACP has said that the region, already one of the most polluted in the country, has suffered worse air quality since xAI's data centers went online. Since last year, the number of turbines at the data centers have more than doubled, resulting in a corresponding increase in three major air pollutants: PM2.5, formaldehyde, and oxides of nitrogen (NO x). All three have been linked to asthma and cardiovascular disease.

Formaldehyde exposure increases the risk of cancer, and PM2.5 has been implicated in a range of ailments, from stroke to Alzheimer's disease. The company, which is now a division of SpaceX, is likely to buy more generators in the coming months or years. In SpaceX's IPO filing, the company said that it will buy another $2.8 billion worth of gas turbines to power its AI data centers over the next three years.

Of that, at least $2 billion are earmarked for 'mobile gas turbines.' The Department of Justice's intervention in this case highlights the tension between the growing demand for AI infrastructure and the need to regulate and mitigate its environmental impact. xAI's use of unpermitted gas turbines near its Memphis data centers has sparked concerns about air quality and public health in the region. The NAACP and environmental groups argue that the company's actions exacerbate existing pollution problems, while the DoJ and xAI claim that the turbines are necessary for supporting critical AI operations, including military applications.