U.S. Justice Dept. defends Elon Musk's xAI in NAACP pollution lawsuit

The U.S. Department of Justice filed a motion to dismiss a civil‑rights lawsuit brought by the NAACP against Elon Musk’s AI subsidiary xAI. The lawsuit alleges that xAI operates dozens of natural‑gas turbines without required permits to power its $20 billion Colossus 2 data center in Memphis, Tennessee, and a related plant in Southaven, Mississippi. Plaintiffs say the turbines emit pollutants linked to asthma, cardiovascular disease and cancer, disproportionately affecting Black neighborhoods.

The DOJ argues the case threatens American national, economic and energy security because the power supply supports the AI model Grok, which the Pentagon says is used in military operations. The filing claims the federal government, not private groups, has primacy in enforcing the Clean Air Act. Critics, including environmental law groups, describe the intervention as a “power grab” intended to shield a wealthy tech company from pollution accountability.

The dispute unfolds amid a broader push by the Trump administration to prioritize AI development, recent record‑breaking SpaceX IPO, and heightened scrutiny of large‑scale data‑center energy use.