xAI sued for operating gas turbines without air permits at data centers
The NAACP, represented by the Southern Environmental Law Center and Earthjustice, sued xAI and its subsidiary MZX Tech in April 2026, alleging the company illegally operated 27 natural gas turbines without required air permits at its data center in Southaven, Mississippi between August and December 2025. xAI has continued purchasing additional turbines despite the litigation.
What happened
The NAACP, represented by the Southern Environmental Law Center and Earthjustice, sued xAI and its subsidiary MZX Tech in April 2026, alleging the company illegally operated 27 natural gas turbines without an air permit at its data center power plant in Southaven, Mississippi between August and December 2025.
In March 2026, xAI received permission to build a 41-turbine power plant in Southaven to power its Colossus 1 and Colossus 2 data centers. The lawsuit claims the company operated 27 turbines without a permit before obtaining this authorization.
Reported impact
The NAACP alleges that air pollution generated by the unpermitted turbines poses a risk to public health and the climate. Gas turbines burn natural gas and emit carbon and hazardous air pollutants.
Index analysis
Whether the turbines legally qualify as 'temporary-mobile' installations is central to the case. If so, they would fall under an exemption allowing operation without an air permit for up to a year under the Clean Air Act.
xAI continued purchasing additional gas turbines despite the litigation. Between late March and early May 2026, the company added 19 turbines to its fleet, bringing the total at Colossus 2 to 46 units.
Governance controls
The Clean Air Act requires companies to obtain an air permit prior to installing and operating gas turbines. State regulators have said portable turbines can be operated without a clean air permit for one year under certain conditions.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.