Mississippi court declines to dismiss NAACP lawsuit against SpaceX’s AI unit — CNBC
A federal court in Mississippi declined to grant a motion by SpaceX’s artificial intelligence unit to dismiss a lawsuit filed by the National Association for the Advancement of Colored People (NAACP). The lawsuit concerns the use of gas turbines to supply electricity to large data centers in the Greater Memphis area, CNBC reports.
Lawsuit over 27 gas turbines
The Southern Environmental Law Center and Earthjustice filed the lawsuit on behalf of the NAACP in the U.S. District Court for the Northern District of Mississippi in April 2026. The plaintiffs claim that from August through December 2025, xAI and its subsidiary MZX Tech installed and operated 27 gas turbines in Southaven without an air-emissions permit and without considering the health and safety of nearby residents.
According to the plaintiffs, the turbines emit substances that contribute to smog formation, as well as particulate matter. This may increase health risks and cause unpleasant odors.
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The court rejected the company’s arguments
SpaceXAI’s lawyers asked the court to dismiss the lawsuit in June. They argued that the turbines are “mobile” emissions sources and therefore are not subject to permitting requirements. The company’s side also insisted that the NAACP has no right to bring an action under the federal Clean Air Act and that such lawsuits by public groups are unconstitutional.
The judge rejected these arguments, noting that the plaintiffs have a right to sue under the Clean Air Act and that the turbines are not “mobile sources” under Mississippi’s program. The court also disagreed that the citizen-suit provision violates Article II of the U.S. Constitution or the nondelegation doctrine concerning the delegation of powers to private individuals.
The Colossus data centers and the power plant that SpaceXAI is also building in Southaven have drawn objections from the local community for several years. About two weeks earlier, the same court also denied a U.S. Department of Justice request to terminate the case against the company. SpaceX did not promptly respond to a request for comment.
