SpaceX announced on Thursday that it will not fully remove the unpermitted gas turbines powering its xAI Colossus data centers near Memphis until July 2027. The company currently operates 69 gas turbines for the data centers, many of which have been running for months without permits. The NAACP and Southern Environmental Law Center have sued xAI over the unpermitted turbines. SpaceX acquired xAI in February and in its IPO filing plans to buy $2.8 billion worth of gas turbines over three years.

SpaceX claims the turbines are exempt from permits because they remain on the trailers they were shipped on, but federal regulations require permits due to turbine size and usage. The turbines are located south of Memphis in Mississippi, a region already among the most polluted in the U.S., and they have the potential to emit over 2,000 tons of smog-forming NOx per year. Last month, the Department of Justice sided with SpaceX, arguing the unpermitted turbines are a matter of national, economic, and energy security.

SpaceX is building a new permanent power plant comprising 41 gas turbines (16.48 MW to 50 MW each) based on Mississippi permit documents, which appear different from the current 69 turbines. Elon Musk earlier acquired APR Energy, a company specializing in temporary natural gas power, but its turbines also appear distinct from those in the new plant, suggesting the new fleet may be intended for another unannounced project.