Elon Musk’s xAI Threatened With Lawsuit Over Clean Air Act Violations

The National Association for the Advancement of Colored People (NAACP) gave Elon Musk's AI company xAI 60 days to remedy alleged Clean Air Act violations at its Memphis data center or face a lawsuit. The civil rights group, working with the Southern Environmental Law Center, claims xAI operates over 35 gas turbines without required air quality permits.

The Colossus facility sits in South Memphis, a predominantly Black neighborhood already dealing with poor air quality from nearby industrial sites. Southern Environmental Law Center (SELC) says xAI installed and runs the turbines without getting construction or operating permits. The turbines release nitrogen oxides and formaldehyde into the air.

SELC attorney Patrick Anderson stated that despite four separate requests for enforcement from his group, local health officials have so far failed to take action. The organization also claims xAI failed to install required pollution controls like catalytic reduction systems that major sources must use under federal law.

We cannot afford to normalize this kind of environmental injustice,

said NAACP president Derrick Johnson.

We will not allow xAI to get away with this.

Thermal imaging from April showed nearly all turbines were running, contradicting xAI's claims they were offline. Memphis officials and the Shelby County Health Department point to a “364-day exemption” for the turbines but have not explained which specific rule applies to xAI's operations.

SELC estimates the facility could release over 2,000 tons of nitrogen oxides each year without proper controls. If xAI doesn't fix the violations within 60 days, the NAACP could ask a court to shut down the data center and impose daily fines. The company already plans a second, larger Memphis facility called Colossus 2 that will need at least 1 gigawatt of power.

Related: Elon Musk’s xAI Burns Over $1B Monthly Amid Soaring AI Development Costs

Data centers increasingly use gas generators to meet power needs while waiting for grid connections. Federal law requires any major pollution source to get permits and install top-tier emissions controls before construction. Companies that bypass this federally-mandated process risk significant enforcement actions, including fines and operational shutdowns.

The 60-day notice represents the first legal step toward a potential lawsuit, giving xAI two months to comply before facing court proceedings.