DOJ backs xAI’s unpermitted gas turbines, calls AI power a matter of national security

The Department of Justice just picked a side in the fight over Elon Musk’s AI data centers, and it’s not the one worried about air quality.

On Monday, the DOJ filed a memorandum supporting xAI in a lawsuit brought by the NAACP back in April. The suit aims to stop xAI from operating dozens of unpermitted natural gas turbines near its Memphis data centers. The DOJ’s argument? Shutting those turbines down would hurt “American national, economic, and energy security” by cutting power to AI systems that support military operations — specifically, Grok is one of four AI models the DOJ says handles “mission-critical operations,” including the recent strikes in Iran.

Let that sink in. The same Grok that occasionally goes off the rails on X is now being cited as essential for military strikes. That’s either impressive or terrifying, depending on your perspective.

The NAACP first signaled its intent to sue last June, trying to stop xAI from using what the company calls “mobile” gas turbines at its Colossus and Colossus 2 data centers. That didn’t work. Since then, xAI has more than doubled its turbine count to 57.

Here’s where the legal wrangling gets interesting. xAI claims the turbines are exempt from Mississippi air pollution regulations for a year because they sit on trailers. The Southern Environmental Law Center, representing the NAACP, says federal law doesn’t care about the trailers — if the turbines are stationary in practice, they’re subject to regulation.

You don’t need to be an environmental lawyer to see the loophole. A turbine on a trailer that never moves is still a turbine pumping out pollution. But xAI is betting the temporary exemption holds, and the DOJ just gave them cover.

The NAACP points out that Memphis is already one of the most polluted regions in the country, and the situation has worsened since xAI’s data centers went live. The 57 turbines have led to increased emissions of PM2.5, formaldehyde, and nitrogen oxides (NOx). These aren’t abstract concerns — PM2.5 is linked to stroke, Alzheimer’s, and cardiovascular disease. Formaldehyde is a known carcinogen. NOx contributes to asthma and respiratory problems.

This is higher than I expected. 57 turbines for two data centers is a lot of hardware, and the pollution impact on a predominantly Black community in Memphis raises questions the DOJ’s filing doesn’t address.

xAI is now part of SpaceX, and the company isn’t slowing down. In SpaceX’s IPO filing, they disclosed plans to buy another $2.8 billion worth of gas turbines over the next three years to power AI data centers. At least $2 billion of that is specifically for “mobile gas turbines.”

So the takeaway is clear: the federal government has decided that AI dominance — and the military applications that come with it — trumps local environmental concerns. Whether that trade-off holds up in court is another matter entirely.