One of America’s oldest and largest civil rights organization National Association for the Advancement of Colored People (NAACP) has filed a lawsuit against Elon Musk’s AI venture xAI and its subsidiary MZX Tech, accusing them of illegally operating methane gas turbines to power a major data centre in South Memphis.
The civil rights organisation is asking a federal court in Mississippi to rule that the company violated the Clean Air Act, halt the use of the turbines and impose financial penalties.At the centre of the complaint is xAI’s Colossus 2 data centre, part of the company’s growing infrastructure to train its AI assistant, Grok. According to the lawsuit, xAI has been running 27 gas turbines at the site without securing the required air permits.
Under US environmental law, any major source of pollution must be approved before it is built or operated.The NAACP argues that the turbines emit hazardous pollutants, including fine particulate matter and chemicals linked to serious health conditions such as respiratory illnesses, heart disease and certain cancers. The issue is particularly sensitive given the facility’s proximity to residential areas, where locals have already raised concerns about air quality and long-term health risks.
The case is being handled by the Southern Environmental Law Center and Earthjustice, which are representing the NAACP. Before heading to court, the organisation issued a 60-day notice of intent to sue, a standard legal requirement under the Clean Air Act. The lawsuit claims xAI failed to respond during that window, prompting the legal escalation.Lawyers involved in the case have framed the issue as both a legal and moral failure. They argue that continuing to run an unpermitted power setup shows disregard not just for environmental regulations but also for nearby communities who have been flagging concerns for months. “xAI must be held accountable for its reckless, unlawful actions — and that’s exactly what this lawsuit aims to do,” said Ben Grillot, a senior attorney for the Southern Environmental Law Center
AI’s electricity problem
Training and running large-scale AI systems requires vast computing infrastructure, which in turn consumes enormous amounts of electricity.
As a result, several tech companies have begun exploring alternative power sources to sustain their data centres.Some, like Oracle, are reportedly relying on gas-based energy solutions similar to xAI’s approach. Others, including Google, Meta and Amazon, are investing in nuclear energy to meet long-term demand while attempting to limit emissions. These strategies are often framed as necessary to keep costs manageable and avoid burdening consumers with rising energy prices.However, the xAI case underlines a key blind spot in that argument. Rapidly building power capacity may help keep AI systems running efficiently, but it also raises serious environmental and public health questions, especially when facilities are located near densely populated areas.
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Should tech companies invest more in renewable energy sources for powering data centers?
Recent policy signals from the Trump administration suggest a push to streamline approvals for infrastructure tied to AI development, including on-site energy generation. Critics say this approach risks sidelining environmental safeguards in favour of accelerating technological growth.
