Judge Rejects xAI Motion to Dismiss NAACP Pollution Lawsuit

A federal judge has denied a motion by xAI to dismiss a lawsuit filed by the NAACP, which alleges the company operated gas turbines at its Colossus data center outside Memphis without necessary 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 operating or preconstruction air permits, thereby violating the Clean Air Act. Engadget reports the lawsuit, filed in April, specifically accuses the company of using unpermitted methane gas turbines.

xAI argued the lawsuit should be dismissed because the turbines are mobile and thus exempt from permitting requirements. But US District Judge Debra M. Brown ruled that the power plant providing power to the data center was not mobile. Judge Brown also rejected xAI's claims that the plaintiffs lacked standing and that citizen lawsuits are unconstitutional.

Engadget notes that xAI received support for its dismissal request from the Justice Department, which asserted that the company's operations are a critical component of U.S. military operations. TechCrunch reports that earlier this month, a similar motion to dismiss filed by the Department of Justice was also denied.

The legal battle arrives amid growing public opposition to data center expansion. TechCrunch reports that New York recently passed a moratorium on new data centers, while other local and state governments are weighing similar actions. This backlash has also led Microsoft and Amazon to pledge to stop using NDAs in government dealings.

NAACP director of environmental and climate justice Abre’ Connor described the ruling as a victory in holding xAI accountable, stating the company cannot operate gas turbines without required permits.