A federal judge has rejected xAI's attempt to dismiss a lawsuit brought by the NAACP, which alleges that the SpaceX-owned company failed to secure the necessary permits for gas turbines powering its Colossus data center near Memphis. The Southern Environmental Law Center, representing the NAACP, stated that the AI company had "installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits." The suit also claims xAI violated the Clean Air Act.

xAI argued for dismissal on two grounds: that the turbines qualify as mobile sources and are therefore exempt from permitting requirements, and that the plaintiffs lacked standing to bring the suit. Judge Debra M. Brown ruled against both arguments. In her decision, she wrote: "Because the plaintiffs have statutory standing under the Clean Air Act, because the combustion turbines are not 'mobile sources' under Mississippi's [State Implementation Plan], and because the citizen suit provision does not violate Article II of the Constitution or the private nondelegation doctrine, the plaintiffs' claims will proceed."

Addressing xAI's constitutional challenge to citizen lawsuits, Judge Brown explained: "Because citizen suit plaintiffs sue on their own behalf, in their own name, and seek penalties that redress harm to themselves, they are not exercising the federal government's executive power."

Abre' Connor, the NAACP's director of environmental and climate justice, called the ruling "another important victory in our effort to hold xAI accountable." She added: "The courts have repeatedly rejected attempts by xAI and the DOJ to dismiss the NAACP's Clean Air Act case, affirming our right to pursue justice for communities impacted by pollution. Our position has been clear: xAI cannot operate gas turbines without the required permits." (A similar dismissal motion from the Department of Justice was denied earlier this month.)

The NAACP's lawsuit advances amid growing public opposition to data centers. New York recently enacted a moratorium on new data centers, and other state and local governments are weighing similar actions. This backlash has also led Amazon and Microsoft to pledge they will stop using NDAs in their dealings with government agencies, and it may become a significant issue in the upcoming U.S. midterm elections.