NAACP Sues xAI Over Unpermitted Gas Plant Pollution

The NAACP filed a lawsuit in the U.S. District Court for the Northern District of Mississippi against Elon Musk's artificial intelligence company, xAI, and its subsidiary MZX Tech. The lawsuit alleges the companies violated the Clean Air Act by operating 27 methane gas-burning turbines at a makeshift power plant without required legal permits. These turbines fuel the Colossus and Colossus II data centers in South Memphis.

According to the filings, xAI bypassed permit requirements by claiming the turbines were for temporary use due to the local power grid's inability to meet energy needs. While the Mississippi Department of Environmental Quality granted an air permit in March, the lawsuit claims the facility operated illegally prior to that date. The plant is located near Boxtown, a predominantly Black community in Shelby County, where residents have reported gas odors and worsened asthma symptoms.

Represented by Earthjustice and the Southern Environmental Law Center, the NAACP argues the facility could become the largest industrial source of nitrogen oxides in the 11-county Memphis metropolitan area. The plaintiffs are seeking a court order to cease unpermitted operations, the installation of best available control technology, and financial penalties for each day of non-compliance.