SpaceX has confirmed that the unpermitted gas turbines powering its xAI data centers near Memphis will remain in operation for nearly another year, even as the company builds a permanent replacement plant. The announcement, made Thursday, pushes full removal of the temporary turbines to July 2027, raising questions about regulatory compliance and environmental impact in a region already burdened with poor air quality. Main Developments SpaceX currently operates 69 gas turbines to power the Colossus data centers, many of which have been running for months without permits. The company says it will eventually replace them with a permanent 1.2 gigawatt natural gas power plant, but the existing turbines won't be fully removed until July 2027. The new facility, according to permit documents from the state of Mississippi, will consist of 41 gas turbines ranging from 16.48 megawatts to 50 megawatts. TechCrunch could not verify the specific models of the 69 existing turbines, but they appear to differ from those planned for the permanent plant. Read also: Why Reddit's Video Pivot Could Reshape How We Consume Stories SpaceX maintains that the turbines can operate without permits because they remain on the trailers they were shipped on. Federal regulations, however, state that the turbines require permits regardless of their mounting, given their size and operational use. The turbines sit south of Memphis in Mississippi, just across the Tennessee border. The area is among the most polluted in the U.S., and xAI's turbines have the potential to emit more than 2,000 tons of smog-forming NOx per year. Background This dispute is not new. The NAACP and the Southern Environmental Law Center have filed suit against xAI over the use of unpermitted turbines. In a significant development last month, the Department of Justice sided with SpaceX, arguing that the unpermitted turbines are a matter of “national, economic, and energy security.” SpaceX acquired xAI in February, inheriting the legal and regulatory challenges. In its IPO filing, SpaceX stated plans to purchase $2.8 billion worth of gas turbines for its data centers over the next three years, signaling a major expansion of its energy infrastructure. Earlier this year, Elon Musk bought APR Energy, a company specializing in temporary natural gas power. Archived versions of APR Energy's website show turbines in its fleet that also appear different from those cited in the permits for the new permanent plant. Why It Matters The extended timeline means the unpermitted turbines will continue operating in a region already suffering from high pollution levels, potentially worsening local air quality. The legal battle also underscores tensions between rapid AI infrastructure expansion and environmental regulations. The Department of Justice's intervention highlights the strategic importance of energy security, but it also raises concerns about whether federal interests can override local environmental protections. For residents in the Memphis area, the health implications are direct and pressing. Additionally, the discrepancy between APR Energy's turbine fleet and the new plant's specifications suggests that the purchased turbines may be intended for another, unannounced project. This points to broader plans by SpaceX or xAI to expand data center capacity, potentially multiplying the environmental footprint. What's Next SpaceX will continue operating the unpermitted turbines until the permanent plant is completed, with full removal slated for July 2027. The new power plant, once operational, will replace the temporary setup, but the transition period leaves months of continued unpermitted emissions. The lawsuits from the NAACP and Southern Environmental Law Center remain active, and the Department of Justice's position adds a layer of federal backing to SpaceX's case. How the courts rule could set a precedent for future data center energy projects. Observers will also watch for announcements about the intended use of APR Energy's turbines, which may signal additional data center projects in the pipeline. For now, the focus remains on the Memphis site and the legal and environmental battles unfolding there.