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SpaceX loses bid to dismiss lawsuit over xAI data center pollution

SpaceX has suffered a setback after losing in a lawsuit aimed at stopping the Clean Air Act requirements on the turbines powering xAI’s Colossus 2 data center in Southaven, Mississippi. According to a report by CNBC, a judge rejected the company’s motion to dismiss the case on Friday, October 30, allowing the National Association for the Advancement of Colored People (NAACP) to proceed, rejecting xAI’s argument that its turbines fall under the ‘mobile sources’ category that exempts it from air permitting requirements.

The case, brought in April 2026 by the NAACP and represented by the Southern Environmental Law Center (SELC) alongside Earthjustice, targets xAI’s operation of a gas-fired power plant to supply electricity to its facility in the Greater Memphis area. SpaceX owns and operates xAI, implicating Elon Musk's wider aerospace and technology company.

According to court documents, NACCP accuses xAI and its subsidiary, MZX Tech, of installing 27 gas turbines in Southaven last year without obtaining the required permits. …

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