A federal lawsuit filed by the NAACP alleges that Elon Musk's xAI data center in Southaven, Mississippi, is illegally operating gas turbines that pump cancer-linked chemicals and other harmful pollutants into nearby communities. The suit claims the company built a power plant for its Colossus 2 data center, which powers the xAI chatbot Grok, without obtaining the necessary air permits.

The lawsuit, filed in April by the NAACP represented by Earthjustice and the Southern Environmental Law Center, asserts that the 27 gas turbines have the potential to emit significant amounts of smog-forming pollutants, fine particulate matter, and formaldehyde, a known carcinogen. These emissions can aggravate respiratory conditions, increase the risk of asthma, heart disease, and cancer, according to the plaintiffs.

The suit highlights that these alleged violations disproportionately affect predominantly Black communities, which already face higher rates of respiratory illnesses. The communities in question are located near homes, schools, and churches in Southaven, DeSoto County, approximately 10 miles outside Memphis, Tennessee.

According to Earthjustice, xAI's Southaven power plant could emit over 1,700 tons of nitrogen oxides annually, a primary contributor to smog in the Memphis area. The group also estimates the plant could release 180 tons of fine particulate matter, 500 tons of carbon monoxide, and 19 tons of formaldehyde each year.

xAI has invested over $20 billion in the MACROHARDRR data center, which aims to house what the company describes as the world's largest AI supercomputer with 2 gigawatts of computing power. The company has stated the data centers are essential for cutting-edge artificial intelligence and other computing tools used by the U.S. government and millions of users worldwide.

Elon Musk's xAI has invested more than $20 billion to build the data center, called MACROHARDRR, in Southaven with the full backing of Mississippi Governor Tate Reeves.

xAI has asked a federal judge to dismiss the case, arguing the NAACP lacks legal standing and that shutting down operations would jeopardize national security and economic interests. The company contends that halting operations would force its AI systems to "precipitously shut down."

The NAACP is seeking a federal judge's order to halt the turbines' operation, impose financial penalties, and mandate the installation of pollution controls. The lawsuit asks the court to declare xAI in violation of the Clean Air Act and require the installation of the best available pollution-control technology, with daily civil penalties of up to $124,426 per alleged violation.

This is not the first legal challenge xAI has faced regarding its Southaven facility. Last month, Mississippi residents filed a separate lawsuit alleging that the power operations create incessant noise and vibrations that negatively impact health and property values.