DOJ Says xAI’s Unapproved Gas Turbines Are Critical to U.S. National and Energy Security

The U.S. Department of Justice has sided with xAI in an ongoing lawsuit seeking to halt the company’s use of dozens of unpermitted natural gas turbines operating near its Memphis data centres, according to a report by Wired.

In a court filing submitted Monday, the DOJ argued that if the NAACP, which filed the lawsuit in April, were to succeed, the outcome could weaken “American national, economic, and energy security” by disrupting the power infrastructure supporting artificial intelligence development tied to the Department of War’s military operations.

According to the Justice Department’s memorandum, xAI’s Grok is one of four AI models currently supporting what it described as “mission-critical operations,” including military activities such as recent U.S. strikes in Iran.

The legal dispute began after the NAACP announced plans last June to challenge xAI’s use of so-called mobile natural gas turbines at its Colossus and Colossus 2 data centres in Memphis. Those efforts were unsuccessful, and Elon Musk’s AI company has since expanded the installation, increasing the number of turbines to 57.

xAI argues that because the turbines remain mounted on trailers, they qualify for a one-year exemption under Mississippi air pollution regulations. However, the Southern Environmental Law Centre, representing the NAACP, contends that federal law classifies trailer-mounted turbines as stationary equipment under certain conditions, meaning they should still require environmental permits.

The NAACP has maintained that the Memphis area, already considered one of the nation’s most polluted regions, has experienced worsening air quality since xAI’s data centres became operational.

Since last year, the number of turbines has more than doubled, contributing to higher emissions of PM2.5, formaldehyde, and nitrogen oxides (NOx). Health experts have linked these pollutants to asthma, cardiovascular disease, increased cancer risk, strokes, and neurological conditions such as Alzheimer’s disease.

The company is also expected to expand its power infrastructure further. In SpaceX’s IPO filing, xAI’s parent company disclosed plans to spend approximately $2.8 billion on additional gas turbines over the next three years to support its growing AI data centre network. Of that amount, roughly $2 billion has been allocated specifically for mobile gas turbine systems.