Judge Rejects xAI Motion to Dismiss Clean Air Act Lawsuit
AI-generated image · US National Wire
A federal judge ruled that a lawsuit over unpermitted gas turbines at the Colossus data center can proceed, highlighting growing regulatory friction for AI infrastructure.
A federal judge has denied a motion by xAI to dismiss a lawsuit filed by the NAACP, which alleges, as TechCrunch first reported, that the SpaceX-owned company operated gas turbines at its Colossus data center near Memphis without required air permits.
According to reporting from TechCrunch, the Southern Environmental Law Center—suing on behalf of the NAACP—claims xAI installed and operated at least 35 combustion turbines and other pollution sources without obtaining necessary operating or preconstruction permits, in violation of the Clean Air Act.
In her decision, Judge Debra M. Brown rejected xAI's argument that the turbines are exempt from permitting because they are mobile. Brown further ruled that the plaintiffs possess statutory standing under the Clean Air Act and that citizen suit provisions are constitutional.
This ruling follows a similar denial of a motion to dismiss filed by the Department of Justice earlier this month. Abre’ Connor, the NAACP’s director of environmental and climate justice, described the decision as a victory in holding xAI accountable, stating the company cannot operate gas turbines without the proper permits.
The legal battle arrives amid a broader shift in public sentiment toward data center expansion. TechCrunch notes that New York recently implemented a moratorium on new data centers, with other local and state governments weighing similar restrictions. This environment of increased scrutiny has also led companies like Microsoft and Amazon to pledge to stop using NDAs in their interactions with government agencies.