SpaceX fails to dismiss NAACP clean air lawsuit over Memphis data centers

SpaceX has lost its bid to dismiss a lawsuit brought by the NAACP regarding air pollution from its data center operations in Greater Memphis. CNBC Tech, CNBC, and BigGo Finance all report that a federal judge in Mississippi issued an opinion late on Friday allowing the case to proceed in federal court. The lawsuit alleges that the company violated the Clean Air Act. [1][2][3]

CNBC Tech reports that the lawsuit targets the artificial intelligence division of Chief Executive Officer Elon Musk, operating as SpaceXAI. The legal challenge focuses on the company's use of gas-fired combustion turbines to supply power to its massive AI facility, known as the Colossus data center, in the Greater Memphis area. [1]

According to CNBC Tech, the Colossus data centers and a separate power plant being constructed in Southaven, Mississippi, have faced local community pushback for years. SpaceX is building a massive gas turbine power plant in Southaven specifically to provide electricity for its regional data center infrastructure. [1]

The corporate entity involved was updated in February 2026 when SpaceX acquired xAI, eventually creating SpaceXAI LLC to manage its super intelligence segment. The NAACP, which was preceded by the 1905 Niagara Movement founded by civil rights leaders including W.E.B. Du Bois, is seeking to enforce environmental regulations through the federal court system. [7][8]