Elon Musk’s xAI is facing controversy over its use of polluting generators at a data center near Memphis, Tennessee, and now the company plans to acquire even more. In SpaceX’s IPO filing released Wednesday, the company disclosed that its xAI division intends to purchase an additional $2.8 billion worth of turbines for AI infrastructure over the next three years. One specific deal, valued at $2 billion, involves “mobile gas turbines” — the same type currently subject to a lawsuit.

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The NAACP filed a lawsuit against xAI last month, alleging the operation of dozens of unregulated gas turbines that worsen air quality in one of the most polluted regions of the country. The organization is seeking an injunction to stop xAI from using these turbines. So far, xAI has obtained permits for 15 turbines, but as of a few weeks ago, it was operating 46. Each turbine has the potential to emit over 2,000 tons of NOx pollution annually — a group of chemicals that contributes to smog and can trigger asthma.

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The company claims it can operate the turbines for up to a year without permits because they are considered “mobile,” meaning they remain on the trailers they were shipped on. This appears to exploit a discrepancy between state and federal interpretations. Mississippi asserts that it does not need to permit mobile generators, but federal regulations stipulate that turbines of this size, even on trailers, are subject to air pollution rules. The EPA ruled earlier this year that xAI was operating the turbines in violation of federal law.

SpaceX acknowledged these risks in its IPO filing. “We currently rely significantly on natural gas and gas turbine technology to power our data center operations,” the company wrote. It warned that injunctions or revoked permits “would adversely affect our AI business.”