A federal judge has ruled that xAI must face a lawsuit brought by the NAACP over pollution and permitting at the company’s data center campus in southern Memphis, Tennessee. US District Judge Debra M. Brown denied xAI’s motion to dismiss, allowing the case to move forward.
The NAACP filed the lawsuit in April, alleging that xAI, now known as SpaceXSI, operates methane-fueled turbines without the necessary permits and violates the Clean Air Act. The organization’s claims concern the company’s use of the turbines to supply power to its Memphis-area data centers.
xAI argued that the turbines were exempt from permitting rules because they were mobile. Judge Brown rejected that position, finding that the power plant supplying the data center was not mobile and therefore did not qualify for the exemption.
The company also continued adding gas turbines at another AI data center site in nearby Southaven, Mississippi, while the lawsuit was pending. The Justice Department supported xAI’s request for dismissal, arguing that the company’s operations were an important part of US military activities.
The case comes as AI companies expand data center construction to support their computing needs, while nearby communities voice growing opposition to these developments.
Sources: Engadget.