Justice Department Moves to Dismiss xAI Pollution Lawsuit

The United States Department of Justice filed a motion to intervene in and dismiss a civil rights lawsuit against Elon Musk's xAI and its subsidiary, MZX Tech. The lawsuit, filed in April by the NAACP, Earthjustice, and the Southern Environmental Law Center, alleges that xAI violated the Clean Air Act by operating unpermitted natural gas turbines to power the Colossus 2 data center in Southaven, Mississippi and Memphis, Tennessee.

Plaintiffs claim the number of unpermitted turbines grew from 27 to 57 by May 2026, increasing emissions of nitrogen oxide and formaldehyde in minority neighborhoods and raising risks of asthma and heart disease. The NAACP is seeking an injunction to stop the turbines and daily fines of approximately $124,000.

Federal officials argue that the data center is vital to American national, economic, and energy security. The Department of Justice and the Department of War state that the Grok Gov model running at the facility is one of only four AI models used on Secret and Top-Secret networks and provides critical support for military operations, including activities involving Iran.

Mississippi Governor Tate Reeves supported the project, calling it the largest private investment in the state's history. Meanwhile, legal advocates criticize the government's intervention as an attempt to shield a wealthy tech company from environmental accountability and an attack on the Clean Air Act's citizen suit provisions, which allow private groups to hold polluters accountable.