The Department of Justice filed a motion on June 15 asking a federal court in Mississippi to dismiss a lawsuit against SpaceX brought by the NAACP. The NAACP sued in April claiming that xAI, Elon Musk's artificial intelligence lab now owned by SpaceX, violated the federal Clean Air Act by using dozens of methane gas-burning turbines to power its AI data centers without proper permits or pollution controls. The DOJ accused the NAACP of threatening national security by seeking to shut off power supply for AI innovation supporting Department of War military operations. The case involves xAI's data centers in and around Memphis, Tennessee, which have faced protests for more than a year over air pollution, electricity and water consumption, and noise.
NAACP Filed Lawsuit in April Over Clean Air Act Violations
The NAACP filed the suit in April claiming that xAI violated the federal Clean Air Act by using dozens of methane gas-burning turbines to power its AI data centers without proper permits or pollution controls. The turbines emit smog-forming pollutants and particulate matter that can lead to increased health risks and an unpleasant odor. The NAACP more recently asked the court to issue an injunction stopping xAI from using the turbines until a judge can make a decision.
SpaceX's Colossus 1 and 2 data centers in and around Memphis, Tennessee, along with the power plants linked to those facilities, have faced protests for more than a year over issues including air pollution, electricity and water consumption and noise around the facilities.
DOJ Cites National Security in Motion Filed June 15
In the motion filed by the DOJ on June 15, attorneys for the department 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."
Cameron Stanley, who leads AI for the Defense Department, is quoted in the DOJ's filing as saying that Grok's continued availability "is a matter of paramount national security." The DOJ said that during the war in Iran, the military version of xAI's Grok had "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."
Before merging with SpaceX in February, xAI had built the Grok AI model and chatbot.
Environmental Groups Challenge DOJ Intervention
Earth Justice, one of the law firms representing the NAACP, told CNBC 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 Environment 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."
Residents Filed Separate Class Action Lawsuit
Residents who live near the xAI facility in Southaven, Mississippi, just outside of Memphis, filed a separate class action lawsuit earlier this month saying that the company's power plant leaves them exposed to, "near-constant noise, vibrations and other nuisance-level harms."
SpaceX Nasdaq Debut and Market Performance
SpaceX held its Nasdaq debut on Friday, topping $2 trillion in market cap. The stock has continued to rally this week, exceeding a valuation of $2.8 trillion on Tuesday, surpassing Amazon. While the xAI data centers were built to fuel Musk's ambitions in AI, SpaceX is now renting compute capacity to Anthropic and Google.
FAQ
What did the DOJ do on June 15 regarding the NAACP lawsuit against SpaceX?
The Department of Justice filed a motion on June 15 asking a federal court in Mississippi to dismiss the lawsuit brought by the NAACP against SpaceX. The DOJ accused the NAACP of threatening national security by seeking to shut off power supply for AI innovation supporting Department of War military operations.
Why did the NAACP sue xAI in April?
The NAACP filed the suit in April claiming that xAI violated the federal Clean Air Act by using dozens of methane gas-burning turbines to power its AI data centers without proper permits or pollution controls. The turbines emit smog-forming pollutants and particulate matter that can lead to increased health risks and an unpleasant odor.
What separate legal action was filed earlier this month?
Residents who live near the xAI facility in Southaven, Mississippi, just outside of Memphis, filed a separate class action lawsuit earlier this month saying that the company's power plant leaves them exposed to near-constant noise, vibrations and other nuisance-level harms.
