The US Department of Justice (DOJ) filed a motion on June 15, 2026, to dismiss a lawsuit brought by the NAACP against Elon Musk's xAI and its subsidiary MZX Tech. The suit alleges operation of natural gas turbines without the required air permits at a facility in Southaven, Mississippi, that powers the Colossus 2 data center near Memphis, Tennessee [1, 2, 3].
The NAACP first filed the lawsuit in April 2026 claiming 27 unpermitted turbines violated the Clean Air Act. By mid-May, the number of turbines operating without permits had grown to 57, with plans for two additional turbines, according to court filings [1, 3]. The turbines are said to contribute pollution linked to increased asthma, respiratory diseases, heart problems, and cancer, particularly affecting Memphis' significant Black population, which already faces high asthma rates [4, 2, 3].
The DOJ and the state of Mississippi argue the turbines do not require permits under state regulations. In their June filing, they said, "The NAACP’s attempt to cut off the power that supports Grok also threatens national security because… Grok provides critical support for the Department of War’s military operations." DOJ Environment and Natural Resources division official Adam Gustafson said, "We would not sit idly by while private organisations use environmental laws to undermine our national security" [1, 4].
Grok is an AI system operated at the Colossus 2 data center used by the Department of War/Defense. Its Gov model aided military operations, including targeted strikes in Iran during Operation Epic Fury, during which 2,000 munitions hit 2,000 distinct targets over 96 hours, said Defense Department AI chief Cameron Stanley. He stated, "Grok’s Gov model supports vital national security missions. Forcing xAI to stop running the gas turbines… directly threatens ongoing national security interests" [1, 2].
The Southern Environmental Law Center, representing the NAACP, criticized the US government for defending xAI despite alleged legal violations. They said, "The US is arguing that xAI should be allowed to break the law solely because the Trump administration says so" [1].
The data center project is estimated to be worth $20 billion and is seen as crucial to AI-enabled military capabilities [4]. The lawsuit and DOJ response reflect a clash between environmental enforcement and national security claims.
The court will next review the DOJ's motion to dismiss the NAACP lawsuit, with further hearings expected to determine whether the turbines require permits under Mississippi law and if environmental rules apply.
