DOJ asks judge to toss NAACP lawsuit over Musk's xAI turbines as critics warn of a 'power grab'

The Department of Justice has stepped into a high-stakes pollution fight involving Elon Musk's AI operations, escalating a dispute that is fast becoming a flashpoint in the broader debate over artificial intelligence expansion, environmental justice, and federal power.

What happened?

CNBC reported that DOJ lawyers asked a federal court in Mississippi to throw out an NAACP case alleging that xAI — now owned by SpaceX — violated the Clean Air Act by operating numerous methane-fueled turbines without the required permits or emissions controls.

Odor, water use, electricity demand, and noise have all drawn concern from communities near SpaceX's Colossus 1 and 2 facilities around Memphis, Tennessee. At the center of the April lawsuit is the power system for those sites, which the group alleges releases ozone-forming pollution and fine particles linked to health risks.

National security was a central argument in the government's June 15 filing. DOJ attorneys said the lawsuit would threaten "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." 

They also cited Cameron Stanley, chief digital and AI officer for the Department of Defense, saying Grok's continued availability "is a matter of paramount national security."

The dispute sits at the intersection of two intensifying pressures: the race to build AI infrastructure and the question of who bears the environmental burden when that expansion moves at high speed.

Why does it matter?

A separate class-action lawsuit filed this month by residents near xAI's Southaven, Mississippi, facility alleges exposure to "near-constant noise, vibrations and other nuisance-level harms," underscoring that for people living nearby, the conflict is not just about corporate strategy but also about air quality and everyday quality of life.

The case also reflects the growing strain AI can place on the energy grid. AI data centers can consume massive amounts of electricity and water, driving up energy bills, straining local infrastructure, and raising security concerns as the technology spreads.

In May, Gallup found that 70% of Americans opposed AI data center construction in their area, including 48% who said they were strongly opposed.

What are people saying?

In a statement to CNBC, Earthjustice, one of the groups representing the NAACP, said 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 Environmental Law Center, which is also representing the NAACP, said the DOJ intervention amounts to "a massive power grab" by the Trump administration.

And Abre' Conner, whom CNBC identified as the NAACP's environmental and climate justice director, said, "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."

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