A federal judge has denied xAI’s motion to dismiss an NAACP lawsuit accusing the SpaceX-owned company of failing to obtain the necessary permits to operate gas turbines that power the Colossus data center outside Memphis.
The Southern Environmental Law Center, which filed the lawsuit on behalf of the NAACP, said the AI companies “installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the required preconstruction permits or air operations permits.” He also accused xAI of violating the Clean Air Act.
xAI asked for the lawsuit to be dismissed, arguing that the turbines are exempt from permitting requirements because they are mobile. The company also argued that the plaintiffs lacked standing to sue.
“Because the plaintiffs have statutory status under the Clean Air Act, because combustion turbines are not ‘mobile power sources’ under the Mississippi State Implementation Plan, and because the civil action provision does not violate Article II of the Constitution or the private non-delegation doctrine, their claims will proceed,” Judge Debra M. Brown wrote in the decision.
Highlighting xAI’s argument that these types of citizen lawsuits are unconstitutional, Judge Brown wrote, “Plaintiffs in citizen lawsuits are not exercising the executive power of the federal government because they sue in their own names and seek punishments that make up for their harm.”
TechCrunch has reached out to SpaceX for comment.
Abre Connor, the NAACP’s environmental and climate justice director, said in a statement that this is “another important victory in our efforts to hold xAI accountable.” (A similar removal petition to the Justice Department was denied earlier this month.)
“The court repeatedly rejected xAI and the Department of Justice’s attempts to dismiss the NAACP’s Clean Air Act lawsuit, affirming our right to pursue justice for communities affected by pollution,” Connor said. “Our position is clear: xAI cannot operate gas turbines without the necessary permits.”
The NAACP’s lawsuit comes as public opinion appears to be sharply tilting against data centers, with New York state recently passing a moratorium on new data centers and other states and local governments considering similar measures.
The backlash has also led Amazon and Microsoft to pledge to stop using NDAs in their dealings with government agencies, which could be a key factor in the impending U.S. midterm elections.
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