The U.S. Department of Justice filed a memorandum supporting xAI in a Clean Air Act lawsuit brought by the NAACP over...

The U.S. Department of Justice filed a memorandum supporting xAI in a Clean Air Act lawsuit brought by the NAACP over unpermitted natural gas turbines at its Memphis-area data centers. The DOJ argued that shutting down the turbines would undermine national security by cutting power to Grok, an AI model used by the Department of War for mission-critical operations, including targeted strikes in Iran (source: TechCrunch). The memorandum further stated that Grok's Grok Gov Model enabled the deployment of over 2,000 munitions to 2,000 distinct targets within 96 hours during Operation Epic Fury (source: Ars Technica). This federal backing reduces regulatory risk for xAI's rapid data center expansion, which is critical for scaling AI compute capacity. The NAACP lawsuit cited health and environmental concerns from 57 unpermitted turbines, but the DOJ's intervention signals strong government support for xAI's energy strategy. The company plans to spend $2.8 billion on additional gas turbines over three years. This event strengthens xAI's operational outlook by providing a clear path to secure power for its Colossus and Colossus 2 data centers.