NAACP sues xAI over unpermitted gas turbines powering data centers in Mississippi
The NAACP sued xAI and its subsidiary MZX Tech in April 2026, alleging they installed 57 gas turbines at a Mississippi facility without obtaining required Clean Air Act permits to power data centers running Grok, an AI system used by the U.S. military. The Department of Justice intervened in June, arguing the lawsuit threatens national security because the turbines supply electricity essential to the Pentagon's AI-dependent military operations.
What happened
The NAACP and its Mississippi State Conference filed a lawsuit on 14 April 2026 against xAI and its subsidiary MZX Tech in U.S. District Court for the Northern District of Mississippi, alleging the companies installed 27 gas-powered turbines at a facility in Southaven, Mississippi, between August and December 2025 without obtaining required Clean Air Act permits.
The Colossus Gas Plant powers two data centers—Colossus I and Colossus II—used to operate the Grok chatbot. The turbines could emit more than 1,700 tons of smog-forming nitrogen oxides annually, potentially making the site the largest industrial source of the pollutant in the greater Memphis area.
By May 2026, when the NAACP requested a preliminary injunction, court filings showed the turbine count had climbed to 57. The facility is located approximately 13 miles south of Memphis, Tennessee, in a majority-Black neighbourhood.
Reported impact
The complaint alleges the company's actions violated the Clean Air Act, which requires major pollution sources to obtain permits before operation. The plaintiffs requested the court shut down the Southaven plant, order the best available pollution controls, and impose penalties of up to $124,400 per day of violation.
The NAACP characterized the case within its environmental justice work, noting that a far larger share of people living around the plant is Black than in the country as a whole. A historically Black community in south Memphis, Boxtown, had previously fought similar unpermitted turbines at Colossus 1, located less than ten miles away.
Index analysis
The U.S. Department of Justice filed on 15 June 2026 to intervene in the case and requested the court dismiss the lawsuit, arguing it 'threatens American national, economic, and energy security' by seeking to shut off power to data centers supporting military operations.
Cameron Stanley, the Department of Defense's chief digital and artificial intelligence officer, stated in a sworn declaration that Grok's military version, deployed in Maven Smart Systems, is a 'critical national security' tool used for targeting, intelligence, readiness, and recruitment. He disclosed that a Defense Department official revealed U.S. forces used Grok to help deploy 'over 2,000 munitions to 2,000 distinct targets' during the first four days of combat operations in Iran.
Governance controls
The lawsuit was filed under the Clean Air Act's citizen suit provision, allowing the NAACP to bring an enforcement action for violations of applicable environmental regulations. The case centres on xAI's alleged failure to obtain permits before installing and operating the gas turbines, a requirement imposed on major pollution sources under federal law.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.