The U.S. Department of Justice has asked a federal court in Mississippi to throw out a lawsuit from the NAACP against SpaceX and its AI division, xAI. The DOJ argues that this lawsuit could pose risks to national security and the advancement of AI in America.
The NAACP's lawsuit, filed back in April, claims that xAI violated the Clean Air Act by operating numerous methane-powered turbines without the necessary permits and pollution controls needed to power its Colossus data centers near Memphis, Tennessee.
They argue that the emissions from these turbines contribute to smog and respiratory issues, putting nearby communities at risk. The NAACP is pushing for fines and an injunction to stop turbine operations until they can secure proper permits.
In a filing dated June 15, DOJ lawyers stated that shutting down the turbines might jeopardize vital AI infrastructure that supports U.S. military functions. They referenced government officials asserting that xAI's Grok AI models are being utilized in defense projects and are crucial for national security.
The DOJ also emphasized that enforcing federal environmental laws should fall primarily to the government, not private entities.
Environmental groups backing the NAACP, like Earthjustice and the Southern Environmental Law Center, have slammed this move, calling it a rare attempt to weaken citizen lawsuits that help uphold environmental laws. Legal experts pointed out that it's quite uncommon for the federal government to seek complete dismissal of a citizen-led Clean Air Act case against a private entity.
This conflict arrives at a time when SpaceX's stock is on the rise, following its recent IPO. The company, which now owns xAI, has been expanding its AI capabilities and renting computing power to major clients like Anthropic and Google.
At the same time, residents near xAI's operations in Tennessee and Mississippi have voiced worries about issues like air pollution, noise, and energy use associated with the rapid growth of these data centers.
Ultimately, this case could serve as a significant test of how to balance environmental regulations, the rights of citizens to litigate, and the federal government's efforts to enhance AI innovation and national security.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.