SpaceX loses bid to toss NAACP lawsuit over Memphis data center air pollution

SpaceX's artificial intelligence branch, known as SpaceXAI, has been unsuccessful in its attempt to have a lawsuit filed by the NAACP dismissed. This ruling was made by a federal judge in Mississippi and was made public on Friday.

The lawsuit contends that SpaceXAI, a division of Elon Musk's aerospace and defense company, has violated the Clean Air Act through its operation of gas-fired combustion turbines that power its extensive AI data centers located in the Greater Memphis area. The Colossus data centers, along with a power plant under construction in Southaven, Mississippi, have been the subject of community opposition for several years.

The legal action was initiated in April 2026 by the Southern Environmental Law Center and Earthjustice, who represent the NAACP in the U.S. District Court for the Northern District of Mississippi. The lawsuit claims that between August and December 2025, SpaceXAI and its subsidiary, MZX Tech, installed and operated 27 gas turbines in Southaven without securing the necessary air permits and without considering the health and safety of local residents.

According to the lawsuit, these turbines release pollutants that contribute to smog and particulate matter, which can elevate health risks and create unpleasant odors in the surrounding area.

In a motion to dismiss filed in June, attorneys for SpaceXAI argued that the NAACP's lawsuit should be thrown out because they claimed the turbines were "mobile" and thus exempt from permitting obligations. They further contended that the NAACP lacked the legal standing to bring a lawsuit under the federal Clean Air Act and asserted that lawsuits of this nature by community organizations were unconstitutional.

However, the presiding judge dismissed these arguments, stating, "Because the plaintiffs have statutory standing under the Clean Air Act, because the combustion turbines are not 'mobile sources' under Mississippi's SIP, and because the citizen suit provision does not violate Article II of the Constitution or the private nondelegation doctrine, the plaintiffs' claims will proceed."

This ruling follows a recent decision by the same court, which denied a request from the Department of Justice to terminate the case against SpaceX. As of now, SpaceX has not issued a statement in response to the ruling.