space x AI division SpaceXAI lost its bid to dismiss an NAACP lawsuit being heard in federal court in Mississippi, according to a judge’s opinion released late Friday.
The lawsuit alleges that the AI division of CEO Elon Musk’s aerospace and defense technology conglomerate violated the Clean Air Act by using gas-fired turbines to power a massive AI data center in Greater Memphis.
The Colossus data center and power plant that SpaceXAI is also building in South Haven, Mississippi, has faced community opposition for years.
The Southern Environmental Law Center and Earthjustice filed the lawsuit in April 2026 in the U.S. District Court for the Northern District of Mississippi on behalf of the NAACP.
The complaint alleges that between August and December 2025, xAI and its subsidiary, MZX Tech, installed and operated 27 gas turbines in South Haven, Mississippi “without obtaining air permits and without regard for the health and safety of nearby residents.”
(SpaceXAI is owned and operated by SpaceX, which has rebranded it SpaceXAI or SpaceXSI.)
According to the lawsuit, the turbines emit pollutants and particulate matter that form smog, which can increase health risks and cause undesirable effects such as unpleasant odors.
In a motion to dismiss filed in June, SpaceXAI’s lawyers argued that the NAACP lawsuit should be dismissed because the company’s use of turbines, which it characterizes as “mobile,” is exempt from permitting requirements. They also argued that the NAACP did not have the right to sue under the federal Clean Air Act and that such lawsuits by community groups were unconstitutional.
The judge in charge of the case rejected these arguments, writing: “Because Plaintiffs have statutory status under the Clean Air Act, because combustion turbines are not ‘mobile power sources’ under Mississippi’s SIP, and because the civil action provision does not violate Article II of the Constitution or the private non-delegation doctrine, Plaintiffs’ claims proceed.”
The ruling came about two weeks after the same court denied the Justice Department’s request to end the case against Musk’s company.
SpaceX did not immediately respond to a request for comment.
