MEMPHIS, TN — The NAACP and an environmental group announced on June 17 that they plan to sue billionaire Elon Musk’s artificial intelligence company, xAI, over concerns about air pollution from the startup’s data center in Memphis.

The Southern Environmental Law Center (SELC) filed a 60-day intent to sue notice on behalf of the NAACP, alleging that xAI violated the Clean Air Act with its prolonged use of gas turbines at the company’s Memphis facility. The lawsuit would be filed against X.AI Corp., and company affiliates CTC Property LLC and CTC Holding LLC.

In the lawsuit, the NAACP and SELC claim that xAI has not filed pre-construction or operating permits for the use of the gas turbines, resulting in several violations of the Clean Air Act. They claim these violations include constructing a major source of pollutants without obtaining a significant deterioration (PSD) permit. Operating without a PSD permit is a direct violation of the Clean Air Act.

Data centers that provide computing power for AI are highly power-intensive and require a constant supply of electricity. As data center computing demand continues to grow, they are increasingly responsible for higher carbon emissions, according to the Environmental and Energy Study Institute.

In June 2024, the Greater Memphis Chamber of Commerce announced that xAI planned to build a supercomputer facility in the city. Over the past year, xAI has doubled in size and has rapidly expanded its Memphis footprint.