The Department of Justice filed a memorandum supporting xAI's use of unpermitted natural gas turbines near its Memphis data centers, arguing that halting operations would threaten national security. The DOJ specifically warned that stopping power to AI models like Grok—which reportedly support military operations including recent Iran strikes—could undermine critical infrastructure.

The NAACP sued xAI in April over its practice of deploying dozens of trailer-mounted turbines at the Tennessee facility, claiming the equipment violates air quality regulations. xAI maintains the mobile turbines are exempt from Mississippi permitting requirements, while environmental lawyers counter that federal law treats trailer-mounted units as stationary sources.

Since last year, xAI has expanded from fewer than 30 turbines to 57 units, with air monitoring showing increased PM2.5, formaldehyde, and NOx levels in an already heavily polluted region. These pollutants are linked to respiratory illness, cancer, and cardiovascular disease.

SpaceX's recent IPO filing reveals plans to spend $2.8 billion on additional gas turbines for AI operations, including at least $2 billion for mobile units. The regulatory dispute highlights growing tensions between rapid AI infrastructure deployment and environmental oversight requirements.