The NAACP has filed a federal lawsuit in Mississippi accusing Elon Musk’s artificial intelligence company, xAI, of violating the Clean Air Act by releasing illegal toxic emissions into predominantly Black neighborhoods near Memphis, Tennessee. The suit, submitted on Tuesday in a federal court in Southaven, Mississippi, alleges that xAI operates unpermitted methane gas generators at a power plant supplying energy to its large data centers in South Memphis.

Represented by the Southern Environmental Law Center and Earthjustice, the NAACP contends that up to 27 gas turbines—each roughly the size of a large bus—have been installed and operated without proper permits. These turbines reportedly emit significant quantities of nitrogen oxides, formaldehyde, and other harmful pollutants linked to respiratory illnesses and increased cancer risk. The emissions are said to disproportionately impact historically Black communities bordering the industrial zone, including the Boxtown neighborhood, which was established by freed enslaved people after emancipation.

Derrick Johnson, president and CEO of the NAACP, condemned the company’s environmental impact on vulnerable communities, stating that such corporate actions treat residents “like obstacles to be pushed aside.” The organization is seeking a court order to halt the operation of the unpermitted turbines, in addition to civil penalties and coverage for litigation costs.

xAI responded to the allegations by affirming their commitment to community and environmental standards, asserting that the temporary power units comply with all relevant regulations. However, the company did not clarify whether it plans to address the accusations raised in the legal complaint.

The lawsuit highlights ongoing concerns about environmental injustice in Memphis neighborhoods, where residents—many of whom are Black—experience disproportionately high rates of asthma, respiratory disease, and lower life expectancy compared to other parts of the city. Prior studies have documented that some neighborhoods in the area face a cancer risk up to four times the national average.

xAI began construction on its first “Colossus” data center in Memphis in 2024. Following the facility’s launch, the company notably increased the number of methane-powered generators. By April 2026, at least 18 generators were observed by aerial photography at the Memphis site, with numbers nearly doubling within a few months. The turbines in Mississippi, which power these data centers, are subject to the current legal challenge.

Local opposition has intensified against xAI’s expansion despite support from Memphis Mayor Paul Young and the city’s chamber of commerce. Environmental groups appealed permits granted for some of the turbines, citing the area’s longstanding failure to meet federal air quality standards. Activists and community leaders have organized protests and public hearings to spotlight the health and environmental repercussions of the company’s operations.

Tennessee State Representative Justin Pearson urged regional officials to intervene, emphasizing the community's right to clean air. “We deserve clean air, and our lungs are not for sale to xAI or Elon Musk,” Pearson said at a recent public hearing.

The lawsuit marks a pivotal moment in the intersection of corporate expansion, environmental regulation, and environmental justice concerns facing communities in the Memphis metropolitan area.