DOJ Backs SpaceX in Bid to Dismiss NAACP Air Pollution Lawsuit Over Memphis Data Centers

The Department of Justice has asked a federal court in Mississippi to dismiss a lawsuit brought by the NAACP against SpaceX, arguing that the civil rights organization's effort to shut down power operations at Elon Musk's AI data centers threatens national and economic security.

The NAACP filed its suit in April, alleging that xAI — Musk's artificial intelligence company, now owned by SpaceX — violated the federal Clean Air Act by operating dozens of methane gas-burning turbines to power its data centers without proper permits or pollution controls. The turbines, the NAACP contends, emit smog-forming pollutants and particulate matter that elevate health risks for surrounding communities and produce an unpleasant odor. The organization subsequently asked the court to issue an injunction halting turbine use pending a judicial ruling.

In a motion filed on June 15, DOJ attorneys accused the NAACP of threatening "American national, economic, and energy security by seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War's military operations."

The filing quotes Cameron Stanley, who leads AI for the Defense Department, as saying that Grok's continued availability "is a matter of paramount national security." The DOJ further stated that during the war in Iran, the military version of xAI's Grok "enabled U.S. forces to deploy over 2,000 munitions to 2,000 distinct targets within 96 hours, a testament to the greatly increased operational efficiency made possible by the Grok Gov Model."

The facilities at the center of the dispute — SpaceX's Colossus 1 and Colossus 2 data centers in and around Memphis, Tennessee — have drawn protests for more than a year over air pollution, electricity and water consumption, and noise.

The NAACP's legal representatives pushed back sharply against the DOJ's intervention. Earthjustice, one of the law firms representing the NAACP, said in an emailed statement that the "DOJ wants to give itself veto power over citizen suits, a key legal tool used to protect communities from illegal pollution for over 50 years." The Southern Environmental Law Center, co-counsel in the case, characterized the DOJ's motion to intervene as a "massive power grab" by the Trump administration.

Abre' Conner, the NAACP Director of Environmental and Climate Justice, said by email that, "At a time when the ultra-rich seem to be protected and supported by some of our government entities, it is important that polluting industries don't get to benefit at the expense of the health of Black communities."

SpaceX did not immediately respond to a request for comment.

The legal battle is not the only litigation the company faces over the Memphis facilities. Residents living near the xAI installation in Southaven, Mississippi — just outside Memphis — filed a separate class action lawsuit earlier this month, alleging that the company's power plant exposes them to "near-constant noise, vibrations and other nuisance-level harms."

The dispute arrives as SpaceX is navigating a high-profile moment in the public markets. The company held its long-awaited Nasdaq debut on Friday, topping $2 trillion in market capitalization. By Tuesday, the stock had surpassed a valuation of $2.8 trillion, exceeding Amazon. Before merging with SpaceX in February, xAI built the Grok AI model to compete with OpenAI, Anthropic, and Google. SpaceX is now also renting compute capacity at the xAI data centers to both Anthropic and Google.

A May Gallup poll found that seven in 10 Americans oppose constructing AI data centers in their local area, with nearly half — 48% — strongly opposed, underscoring the broader public skepticism that surrounds the industry's rapid infrastructure expansion.

How the Mississippi court rules on the DOJ's motion to intervene could set a significant precedent for how citizen suits under the Clean Air Act are handled in cases where the government asserts a national security interest, with implications for communities near AI infrastructure across the country.

Disclaimer