Lawsuit Alleges Illegal Pollution from xAI’s Datacenter Power Plant
A lawsuit filed on Tuesday in Mississippi federal court accuses Elon Musk’s artificial intelligence company, xAI, of unlawfully emitting toxic pollutants into residential neighborhoods located on the border of Tennessee and Mississippi.
The NAACP, represented by environmental organizations Southern Environmental Law Center and Earthjustice, claims that xAI is violating the Clean Air Act through emissions from its temporary power plant in Southaven, Mississippi, which supplies electricity to its datacenter. The suit states that xAI has been polluting areas containing homes, schools, and churches, including historically Black communities, by operating dozens of methane gas generators without the necessary permits.
The NAACP seeks to compel the company to cease operations of its unpermitted turbines in Southaven.
“A data center should not be a potential death sentence for a community’s health,” said Abre’ Conner, director of environmental and climate justice for the NAACP. “By looking to evade clear air laws to operate dirty turbines that emit pollution and known carcinogens, these companies are following a shameful, familiar pattern: asking Black and frontline communities to bear the toxic brunt of ‘innovation’.”
xAI’s Datacenters and Community Impact
xAI operates two datacenters in the region, nicknamed “Colossus” and “Colossus II.” The latter is a massive facility occupying one million square feet in Southaven. The original Colossus is located in Memphis, Tennessee’s industrial zone, just a few miles from residential neighborhoods that have historically endured significant pollution. One such neighborhood is Boxtown, established by formerly enslaved people after emancipation in the 19th century.
The NAACP’s lawsuit alleges that xAI illegally installed and operated up to 27 gas turbines, each roughly the size of a large bus, to power its Southaven datacenter. The group contends that Colossus II has the capacity to emit over 1,700 tons of harmful nitrogen oxides annually, along with toxic chemicals such as formaldehyde.
xAI has not responded to requests for comment.
Black residents continue to constitute a significant portion of the Memphis area neighborhoods affected, which experience higher rates of asthma and respiratory diseases, as well as lower life expectancy compared to other parts of the city. Studies have also indicated that these neighborhoods face elevated cancer risks.
The NAACP is requesting the court to declare that xAI violated the Clean Air Act, mandate the installation of the best available control technology on the power plant, and impose financial penalties for each day the company violated federal law. The organization has a similar pending lawsuit against xAI concerning its Colossus facility in Memphis.
Methane Gas Generators Proliferate Rapidly
xAI announced the construction of its first Colossus datacenter in Memphis in 2024 to power its chatbot Grok. Shortly thereafter, dozens of methane gas generators appeared at the site. Aerial photographs taken by the Southern Environmental Law Center revealed 122 generators present 122 days after Musk announced the facility was operational.
By April 2025, the number of generators had increased further, according to photographs. Eventually, xAI obtained permits for 15 generators at the Memphis location.
Last year, xAI began construction of Colossus II in Southaven and again deployed dozens of portable gas turbines. In March, Mississippi regulators approved a permit for 41 permanent turbines at this site. However, the NAACP alleges that xAI is operating 27 generators at the Southaven location without air permits and is requesting that regulators revoke the March permit.
Separately, xAI is developing another datacenter in Southaven named Macrohardrr, where gas-burning turbines are also expected to be used.
Community Opposition and Calls for Clean Air
The rapid expansion of xAI’s facilities in Memphis and Southaven has met strong opposition from local residents, despite support from the mayors and chambers of commerce of both cities.
Community members, local politicians, and environmental nonprofits have organized protests and public forums to raise concerns about the pollution attributed to xAI’s operations.
“Our right to clean air is not up for negotiation, especially when companies prove expediency not people is their priority,” stated Abre’ Conner of the NAACP.
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