MEMPHIS — The Department of Justice announced plans on June 16, 2026, to seek dismissal of a lawsuit filed by the NAACP against xAI. The lawsuit concerns the company's operation of unpermitted gas turbines at its data centers near Memphis.

xAI operates supercomputers and data centers, including facilities known as Colossus 1 and Colossus 2. These locations are in South Memphis and Southaven, Mississippi. Southaven is approximately 15 minutes from downtown Memphis.

The company installed at least 57 gas turbines to power its facilities in Southaven. These turbines were installed without first obtaining air emission permits. The NAACP filed its federal lawsuit against xAI under the Clean Air Act in April. The Southern Environmental Law Center represents the NAACP in the legal action.

In February, the Tennessee Valley Authority approved an agreement granting the company up to 300 megawatts of electrical power. This amount of power can supply between 75,000 and 150,000 homes with average daily usage, according to the authority. An analysis from January 2026 indicated that residential electricity prices increased by 10 percent between 2022 and 2024. Residential electricity prices increased by 25 percent between 2020 and 2024. Electricity costs for data centers increased by 3 percent between 2022 and 2024, according to the analysis.