A US federal court rejected SpaceX's motion to dismiss a Clean Air Act lawsuit concerning unpermitted gas-burning turbines used to power xAI data center infrastructure in the Memphis region.
The court's ruling confirms plaintiff standing and determines the turbines are stationary sources, allowing the environmental compliance case to move forward.
The dispute concerns the use of natural gas turbines to power the massive energy needs of artificial intelligence data centers in the Memphis area. Specifically, in Southaven, Mississippi, where the “Colossus” data center is located and a related power plant is being built, xAI and its subsidiary MZX Tech allegedly installed and operated 27 natural gas turbines without the necessary air quality permits, according to the lawsuit filed in April 2026 by organizations including the Southern Environmental Law Center and Earthjustice on behalf of the NAACP.
The plaintiffs say the turbines emit pollutants that contribute to smog and particulate matter, threatening the health of local residents and causing unpleasant odors. The company's lawyers have sought to dismiss the lawsuit, arguing that the turbines are "mobile" and exempt from permitting, and that the NAACP has no standing to sue under the federal Clean Air Act.
The competent judge rejected the defense's arguments, ruling that the plaintiffs have standing to sue, that the turbines are not mobile sources of pollution under the state's institutional framework, and that the relevant provisions of the law are constitutional, thus allowing the litigation to continue.
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