Elon Musk's AI firm sued over unpermitted power plant
The NAACP, along with two environmental groups, is taking legal action against Elon Musk's xAI, claiming the company broke the Clean Air Act by running 27 methane-powered turbines at its Colossus 2 datacenter in Southaven, Mississippi—without proper air permits.
These turbines reportedly generate up to 495 megawatts for AI operations that kicked off in late 2025.
xAI is running a de facto power plant without permit
These turbines are likely making the facility the largest industrial source of nitrogen oxides in the 11-county Memphis metropolitan area, which already struggles with air quality issues.
This legal action follows a similar notice of intent to sue against xAI last year in Memphis; since then, some turbines have been permitted or removed.
Now, environmental groups want penalties and an immediate stop to unpermitted operations.
As Earthjustice's Laura Thoms put it: "xAI is running a de facto power plant without an air permit."
So far, xAI hasn't responded publicly.