The NAACP has filed a federal lawsuit against xAI and subsidiary MZX Tech, alleging the companies are operating unpermitted gas turbines at their Colossus 2 data center in South Memphis. The civil action, filed in the U.S. District Court for the Northern District of Mississippi, seeks to halt operations of the unpermitted equipment and impose financial penalties for violations of the Clean Air Act.
The complaint centers on 27 gas turbines allegedly powering the facility without required air permits. These turbines fuel xAI's infrastructure for training Grok, the company's AI assistant. According to the lawsuit, the turbines emit pollution, hazardous chemicals, and particulate matter linked to cardiovascular disease, respiratory illness, and cancer — concerns amplified by the data center's proximity to residential neighborhoods.
The Clean Air Act mandates that pollution sources obtain air permits before operation or construction. xAI's failure to secure such permits constitutes a violation, the NAACP argues. The organization provided xAI with a 60-day notice of intent to sue, as required by federal law. When the company did not respond, the lawsuit proceeded.
The Southern Environmental Law Center and Earthjustice represent the NAACP in the action. Ben Grillot, Senior Attorney at the Environmental Law Center, criticized xAI's approach, stating the company's operation of unpermitted turbines without adequate pollution controls is both illegal and dismissive of nearby residents' health concerns.
The lawsuit marks an escalation in scrutiny surrounding data center expansion and environmental impact. As AI companies race to build infrastructure for training large language models, power demands have intensified, prompting facilities to deploy on-site generation capacity. The case raises questions about whether companies are adequately addressing environmental regulations during rapid expansion.
xAI, founded by Elon Musk and now owned by SpaceX, operates multiple data centers globally to support its computational needs. The Colossus 2 facility represents part of the company's growing network of AI training infrastructure. The lawsuit seeks declaratory relief, cessation of turbine operations, civil penalties, and other remedies for Clean Air Act violations.