The NAACP has sued xAI over the use of gas turbines to power its Memphis-area data center operations. The civil rights group said the company violated the Clean Air Act by running the units without permits. The case positions xAI’s power strategy alongside concerns about data center emissions and electricity demand.
NAACP lawsuit targets turbine operations
According to a WSJ report, the NAACP filed the lawsuit on Tuesday in the U.S. District Court for the Northern District of Mississippi. It named xAI and its subsidiary, MZX Tech, LLC, as defendants. The complaint said the companies installed and operated 27 gas turbines in Southaven between August and December 2025. The filing said xAI ran those turbines without an air permit. The lawsuit confirmed that the company ignored the health and safety of nearby residents.
According to the complaint, the turbines released smog-forming pollutants and particulate matter into the air. The NAACP asked the court for declaratory and injunctive relief. It wants xAI to stop operating the Colossus Gas Plant until it gets the required permits. The group also wants the company to apply pollution controls and pay civil penalties for each day of alleged violations.
Abre’ Conner, the NAACP’s director of Environmental and Climate Justice, criticized the company’s conduct. Conner said, “Our right to clean air is not up for negotiation.” Conner also said companies cannot place expediency over people living near the site. xAI has said the turbines did not require federal permits because they served a temporary use. That claim now sits at the center of the dispute over the Southaven operations.
xAI expansion plans shine spotlight on Southaven and Memphis
xAI operates the Colossus 1 and Colossus 2 data centers in Memphis. Those facilities sit just across the Mississippi state line from Southaven. Elon Musk has relied on the greater Memphis area as a base for xAI’s infrastructure buildout. The company is also building another site in Southaven called Macrohardrr. That project includes a more permanent power plant with 41 natural gas-burning turbines.
Separately, the NAACP has asked Mississippi regulators to revoke a permit issued in March for that larger plant. The lawsuit said tens of thousands of people live, work, and study near xAI’s power plant. It also said hundreds of thousands more live across the greater Memphis area.
The filing added that Black residents make up a larger share of the nearby population than the national average. SpaceX now owns xAI after a merger completed earlier this year in a deal that valued the combined company at $1.25 trillion. xAI has pursued rapid expansion as it competes with OpenAI, Anthropic, and Google.
Earthjustice and the Southern Environmental Law Center represent the NAACP in the case. Their filing focuses on turbine permits, pollution controls, and operating conditions in Southaven. The complaint also seeks court action tied to the gas plant linked to xAI’s data center operations.
Astutis report details data center energy use and emissions
According to a report by Astutis, data centers contribute to rising electricity demand and greenhouse gas emissions. The report said global data centers account for around 1.3 percent of final electricity demand. It also said energy use continues to climb as digital infrastructure expands. Astutis said countries with fast-growing data center markets are already seeing pressure on electricity systems. The report cited Ireland as one example of that trend. It said data centers accounted for 18 percent of Ireland’s total electricity consumption in 2022.
The global data center electricity use is expected to reach 4 percent by 2030. It also said Denmark could see a sixfold rise in data center energy use by 2030. Under that projection, data centers would account for about 15 percent of Denmark’s electricity consumption. Astutis said fossil fuel-based electricity links data center growth to greenhouse gas emissions. The report said coal and natural gas remain major sources of power in many grids. As a result, higher electricity use can raise carbon dioxide emissions.
Additionally, the report pointed to emissions tied to equipment manufacturing, transport, and disposal. It said cooling systems add further electricity demand at large facilities. Astutis added that some refrigerants act as potent greenhouse gases when operators use them. Warmer climates can increase water demand for cooling systems, while water treatment and transport can generate additional emissions.
Those factors add to the environmental burden tied to large-scale digital infrastructure. Astutis cited International Energy Agency data in its review. The report said data centers and transmission networks produced around 330 million tonnes of carbon dioxide equivalent in 2020. It said that the total will keep rising unless companies improve efficiency and use more renewable energy.