SpaceXAI to remove unpermitted gas turbines from Tennessee data center by 2027
SpaceXAI says it will take about a year to remove all 69 gas turbines operating without permits at its data center near Memphis, Tennessee, following a NAACP lawsuit and an agreement with Mississippi regulators.
SpaceXAI announced this week that it will fully dismantle the gas turbines that have been powering its data center operations near Memphis, Tennessee, with the process expected to be completed by July 2027. The turbines, which number 69, are currently operating without required permits, according to the company.
The equipment has become the subject of a lawsuit filed by the NAACP, which alleges that the turbines expose nearby communities to hazardous chemicals and pollution. The civil rights organization has pointed to potential health risks including asthma, respiratory diseases, heart failure, and cancer.
In a new update, SpaceXAI said that a 1.2-gigawatt power plant under construction in Mississippi, which is being built under a Clean Air Act permit, will eventually replace the temporary turbines. The removal work is scheduled to begin in August 2026 under an agreed order with the Mississippi Department of Environmental Quality, though the company says it will take until July 2027 to fully complete.
The company behind the project, SpaceXAI, was created after SpaceX acquired xAI in February 2026. Alongside its existing rocket and satellite internet business, the company has announced plans to deploy data centers in space.
The NAACP sued xAI in April, arguing that the unpermitted turbines violate the Clean Air Act. In response, SpaceXAI has said its monitoring shows that local air quality continues to meet or exceed Environmental Protection Agency standards. The Justice Department filed a motion to dismiss the lawsuit in June, but the case is still moving forward.
While the agreed removal of the turbines is a positive development for residents living near SpaceXAI's operations in Tennessee and Mississippi, it is unlikely to slow down the company's artificial intelligence infrastructure buildout. SpaceXAI has already signed agreements to offer data center capacity to both Anthropic and Google.
