Elon Musk's xAI Faces Threat of NAACP Lawsuit Over Air Pollution in Mississippi

Law firms representing the NAACP sent xAI a notice of intent to sue over alleged Clean Air Act violations at the company's data center facility in Southaven, Mississippi.

Published on Feb. 14, 2026

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Elon Musk's artificial intelligence company xAI, which recently merged with SpaceX, is facing increased pressure from environmental and civil rights groups over pollution concerns at its data center facility in Southaven, Mississippi. The Southern Environmental Law Center and Earthjustice, on behalf of the NAACP, have sent xAI a notice of intent to sue, alleging the company's use of dozens of natural gas-burning turbines violates the Clean Air Act and harms nearby communities.

Why it matters

This case highlights the growing tensions between tech companies rapidly expanding their data center footprint and local communities concerned about the environmental impact. As xAI aims to compete with industry giants like OpenAI and Google in the generative AI market, its aggressive expansion plans in the Memphis area have drawn scrutiny from civil rights and environmental groups over air pollution and noise issues.

The details

The NAACP and environmental groups allege xAI's use of the natural gas turbines at its Southaven facility, as well as previous sites in Memphis, requires a federal permit under the Clean Air Act but has been operating without one. Residents in the majority-Black community of Boxtown in South Memphis have testified about the stench and health impacts of worsening air pollution from xAI's turbines. Scientists have also found the turbines are contributing to the area's air quality problems.

  • In early 2023, Mississippi Governor Tate Reeves announced plans for xAI's third data center project in Southaven.
  • Last year, residents in Boxtown testified at public hearings about the impact of xAI's turbine use on air quality and their health.
  • The EPA recently clarified that xAI's turbines cannot be categorized as temporary, non-road engines, meaning the company needs federal permits to operate them.

The players

xAI

Elon Musk's artificial intelligence company that recently merged with SpaceX. xAI is trying to compete with industry leaders like OpenAI and Google in the generative AI market.

NAACP

The National Association for the Advancement of Colored People, a prominent civil rights organization that is taking legal action against xAI over pollution concerns in Mississippi.

Southern Environmental Law Center

A non-profit law firm representing the NAACP in the legal action against xAI.

Earthjustice

A non-profit environmental law organization also representing the NAACP in the legal action against xAI.

Tate Reeves

The Republican Governor of Mississippi who announced plans for xAI's third data center project in Southaven.

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What they’re saying

“XAI has to follow the law, just like any other company. And when it flouts the Clean Air Act's bedrock protections against unpermitted emissions, it puts the health and welfare of ordinary citizens at risk. That's why we intend to hold xAI accountable here.”

— Patrick Anderson, Senior Attorney, Southern Environmental Law Center (CNBC)

What’s next

Mississippi officials will hold a public hearing on Tuesday for community members to express concerns about xAI's expansion plans and whether the state should grant the company permission to install and operate 41 permanent turbines at its Southaven facility.

The takeaway

This case highlights the growing tensions between tech companies rapidly expanding their data center footprint and local communities concerned about the environmental impact. As xAI aims to compete in the booming generative AI market, its aggressive expansion plans have drawn scrutiny over air pollution and noise issues, underscoring the need for tech firms to prioritize environmental justice and community engagement.