A federal judge has denied a motion by xAI to dismiss a lawsuit filed by the NAACP, which alleges that the company—an affiliate of SpaceX—failed to obtain the necessary permits for the gas turbines used to power its “Colossus” data center near Memphis.
The Southern Environmental Law Center, representing the NAACP, filed the lawsuit, claiming that the AI company “installed and operated at least 35 gas turbines and other sources of air pollution at the Colossus facility without ever obtaining the required pre-construction or operating air permits.” The center further alleges that xAI has violated the Clean Air Act.
xAI sought to have the case dismissed, arguing that the turbines—being mobile—did not require permits. The company also contended that the plaintiffs lacked the legal standing to bring the suit.
“Because the plaintiffs have statutory standing under the Clean Air Act, because the gas turbines do not qualify as ‘mobile sources’ under Mississippi’s [State Implementation Plan], and because the citizen-suit provision does not violate Article II of the Constitution or the non-delegation doctrine, the plaintiffs’ claims shall proceed,” Judge Debra M. Brown wrote in her ruling.
Addressing xAI’s argument that such citizen suits are unconstitutional, Judge Brown wrote: “Because plaintiffs in a citizen suit bring the action in their own name and on their own behalf—seeking redress for injuries they themselves have suffered—they are not exercising the executive power of the federal government.”
TechCrunch has reached out to SpaceX for comment.
Abre’ Conner, Director of Environmental and Climate Justice at the NAACP, described the ruling in a statement as “another significant victory in our efforts to hold xAI accountable.” (Earlier this month, the court denied a similar motion to dismiss.)
Connor stated: “The court has repeatedly rejected requests by xAI and the Department of Justice to dismiss the lawsuit filed by the NAACP under the Clean Air Act, which affirms our right to seek justice for communities affected by pollution. Our position is clear: xAI must not operate gas turbines without obtaining the necessary permits.”
As public opinion appears to be shifting sharply against data centers, the NAACP’s lawsuit is moving forward. New York State recently enacted a moratorium on the construction of new data centers, and other state and local governments are considering similar measures.
This public backlash has also prompted Amazon and Microsoft to commit to ending the use of non-disclosure agreements (NDAs) in their dealings with government agencies—a move that could have significant implications for the upcoming U.S. midterm elections.