The National Association for the Advancement of Colored People (NAACP) and environmental groups sued in April. Musk’s xAI allegedly ran dozens of turbines at the Southaven location without the required approvals under federal air rules.
In the filing, the NAACP argues xAI’s setup amounts to an illegal operation under the Clean Air Act, alleging dozens of methane-fueled generators were run without the required permits. The group is asking a judge to order the company to stop using the turbines it says lack authorization.
XAI has now obtained permits for 15 turbines for AI-related power needs over the next three years. It had 46 in operation as of a few weeks ago, TechCrunch reported.
The gas turbines are a direct source of toxic air pollution and hazardous compounds such as formaldehyde. When the turbines burn natural gas to power xAI’s Colossus data center, they emit nitrogen oxides and fine particulate matter. These pollutants can often be linked to asthma, other respiratory illnesses, cardiovascular problems and certain cancers.
The American Lung Association gave DeSoto County, Mississippi, and Shelby County, Tennessee, an “F” grade for ozone pollution in 2026. The Colossus Gas Plant is the culprit for that score, the lawsuit says.
SpaceX’s IPO filing also described a $2 billion agreement for mobile gas turbines, the same type at the center of the dispute.
The company flagged the exposure in its filing, writing, “we currently rely significantly on natural gas and gas turbine technology to power our data center operations,” and warning that injunctions or pulled permits “would adversely affect our AI business.”
XAI argues that the units can run for up to a year without permits since they remain on mobile shipping trailers.
The company is taking advantage of a gap between state and federal rules. Mississippi officials say mobile generators don’t require permits, while federal regulators maintain that turbines of that size are still subject to air-pollution laws even when mounted on trailers. Earlier this year, the EPA determined that xAI was operating the turbines in violation of federal regulations.
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