SpaceX will fully remove the unpermitted gas turbines it’s using to power SpaceXAI data center operations near Memphis, Tennessee by July 2027, according to a new company update spotted by TechCrunch. The turbines are currently the subject of a NAACP lawsuit that alleges the company is exposing nearby communities to hazardous chemicals and pollution.

The company says a new 1.2GW power plant it’s constructing under a Clean Air Act permit in Mississippi will ultimately replace the 69 unpermitted gas turbines it’s currently relying on. As part of an agreed order with the Mississippi Department of Environmental Quality, removal of the temporary turbines will begin in August 2026, though SpaceX says the process won’t be fully complete until July 2027.

SpaceX acquired xAI in February 2026, with big plans to launch data centers into space, alongside its pre-existing commitment to rockets and satellite internet. The NAACP sued xAI not long after in April, alleging the company’s unpermitted turbines violated the Clean Air Act, and highlighting the variety of health issues exposure to pollution can cause, including asthma, respiratory diseases, heart failure and cancer. SpaceXAI said this week that its current data “shows that local air quality continues to meet or exceed EPA standards.”

The Justice Department submitted a filing to get the NAACP lawsuit dismissed in June, but at least so far the case is moving forward. Agreeing to remove the turbines is an improvement for anyone living near SpaceX’s operation in Tennessee and Mississippi, but it likely won’t slow down the company’s AI infrastructure buildout. SpaceX has already signed new agreements to offer data center capacity to both Anthropic and Google.