SpaceXAI News: SpaceXAI has announced that it will phase out all 69 unpermitted natural gas turbines powering its AI data centre operations near Memphis, Tennessee, with the removal expected to be completed by July 2027. The move comes as the company faces a lawsuit alleging violations of the Clean Air Act and concerns over air pollution affecting nearby communities.
Company Plans to Replace Temporary Turbines
According to a recent company update, the temporary gas turbines currently supplying electricity to the data centre will be replaced by a new 1.2-gigawatt power plant being built in Mississippi.
The upcoming facility is being developed under a valid Clean Air Act permit and is expected to provide long-term power for the company’s growing artificial intelligence infrastructure.
As part of an agreement with the Mississippi Department of Environmental Quality (MDEQ), SpaceXAI will begin removing the temporary turbines in August 2026, with the entire process scheduled for completion by July 2027.
Clean Air Act Lawsuit Sparks Controversy
The announcement follows legal action filed by the NAACP, which accused the company of operating dozens of gas turbines without the required permits.
The lawsuit alleges that emissions from the turbines expose residents living near the Memphis facility to harmful air pollutants, potentially increasing the risk of asthma, respiratory illnesses, cardiovascular disease and certain types of cancer.
The NAACP argues that the operation violates provisions of the US Clean Air Act, prompting increased scrutiny of the company’s energy infrastructure.
SpaceXAI Says Air Quality Meets EPA Standards
Responding to the allegations, SpaceXAI has maintained that its environmental monitoring does not indicate unsafe pollution levels.
The company stated that available data shows local air quality continues to meet or exceed standards set by the US Environmental Protection Agency (EPA), despite concerns raised by community groups.
Legal Battle Continues
Although the US Department of Justice filed a motion in June seeking dismissal of the lawsuit, the legal proceedings remain ongoing.
The case continues to draw attention as environmental advocates and local residents seek greater oversight of large-scale AI infrastructure projects and their environmental impact.
AI Expansion Remains on Track
Despite the legal challenges, SpaceXAI’s expansion plans appear unaffected.
The company acquired xAI in February 2026, significantly expanding its ambitions in artificial intelligence alongside its established businesses in rockets and satellite communications. It has also outlined long-term plans to develop advanced AI infrastructure, including concepts involving space-based data centres.
Meanwhile, SpaceXAI has secured agreements to provide AI computing capacity to major technology companies, including Anthropic and Google, reinforcing its position in the rapidly growing AI infrastructure market.
While the decision to remove the temporary turbines addresses one of the key environmental concerns, the company remains focused on expanding its large-scale computing capabilities as demand for AI services continues to accelerate.