A federal judge has ruled that an NAACP lawsuit against xAI over air pollution at its Colossus data center can move forward.
The judge denied a motion from xAI, the artificial intelligence company owned by SpaceX, that asked the court to throw out the case. The ruling was reported on October 31, 2026.
The lawsuit centers on gas turbines used to power the Colossus data center outside Memphis, Tennessee.
What the Lawsuit Claims
The Southern Environmental Law Center filed the suit on behalf of the NAACP. It says xAI failed to get the permits needed to operate the turbines.
According to the group, xAI “installed and operated at least 35 combustion turbines and other sources of air pollution at the Colossus site without ever obtaining the necessary preconstruction or operating air permits.”
The lawsuit also accuses the company of violating the Clean Air Act, the main federal law that controls air pollution.
xAI argued that the turbines did not need permits because they are mobile. The company also said the plaintiffs did not have the legal standing to sue.
How the Judge Ruled
Judge Debra M. Brown rejected those arguments. She wrote that the plaintiffs have standing under the Clean Air Act and that the turbines are not “mobile sources” under Mississippi’s State Implementation Plan.
She also rejected the claim that this type of lawsuit breaks the Constitution. xAI had argued that citizen lawsuits violate Article II and the private nondelegation doctrine.
“Because citizen suit plaintiffs sue on their own behalf, in their own name, and seek penalties that redress harm to themselves, they are not exercising the federal government’s executive power,” Brown wrote.
TechCrunch said it reached out to SpaceX for comment.
Abre’ Connor, the NAACP’s director of environmental and climate justice, called the decision “another important victory in our effort to hold xAI accountable.”
“The courts have repeatedly rejected attempts by xAI and the DOJ to dismiss the NAACP’s Clean Air Act case,” Connor said. “Our position has been clear: xAI cannot operate gas turbines without the required permits.”
Earlier in October, a judge also denied a similar motion to dismiss from the U.S. Department of Justice.
The case comes as data centers face growing public pushback. New York passed a moratorium on new data centers in July, and other state and local governments are considering similar steps.
Amazon and Microsoft have said they will stop using nondisclosure agreements in their dealings with government agencies following the backlash.
Reuters reported that concerns over data centers could become a factor in the upcoming U.S. midterm elections.
With both dismissal attempts now rejected, the NAACP’s claims against xAI will proceed in court.
