Updated
Updated · CNBC · Jun 16
DOJ Seeks to Dismiss NAACP Suit Against SpaceX xAI, Citing 2,000 Military Strikes
Updated
Updated · CNBC · Jun 16

DOJ Seeks to Dismiss NAACP Suit Against SpaceX xAI, Citing 2,000 Military Strikes

3 articles · Updated · CNBC · Jun 16

Summary

  • A June 15 DOJ filing asked a Mississippi federal court to throw out the NAACP's Clean Air Act case against SpaceX-owned xAI and block its bid to halt turbine use at Memphis-area data centers.
  • The department said cutting power to xAI would threaten national, economic and energy security, citing Pentagon use of Grok and saying its military model helped U.S. forces hit 2,000 targets with 2,000 munitions in 96 hours during the Iran war.
  • The NAACP alleges xAI ran dozens of methane-burning turbines without permits or pollution controls, emitting smog-forming pollutants and particulates; Earthjustice and the Southern Environmental Law Center called the DOJ move a power grab.
  • The fight lands as SpaceX stock has surged since its Nasdaq debut, lifting its valuation above $2.8 trillion, while xAI's Memphis operations already face protests and a separate class action over pollution, water use, noise and vibrations.

Insights

Can AI's immense energy needs be met without sacrificing clean air and public health?
When national security relies on AI, who decides the environmental price communities must pay?

Powering AI, Polluting Communities: The xAI Data Center Legal Showdown and Its National Implications

Overview

xAI's rapid expansion of its data center operations in Southaven, Mississippi, began with the 2025 acquisition of local properties by MZX Tech LLC, a company linked to xAI. This led to the development of the Colossus 2 data center, powered by 41 gas turbines. Environmental groups and the Southern Environmental Law Center warned that this would create one of the state's largest fossil fuel power plants, increasing pollution and health risks for nearby communities. The aggressive build-out sparked strong community opposition and legal challenges, highlighting the tension between technological growth, environmental protection, and public health.

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