xAI Faces Lawsuit Threat Over Unpermitted Mississippi Gas Turbines

Southaven, Mississippi – xAI, the artificial intelligence company founded by Elon Musk, is facing legal threats over its operation of unpermitted gas turbines at its Colossus 2 data center. The Southern Environmental Law Center (SELC) and Earthjustice, representing the Mississippi State Conference of the NAACP and the national NAACP, sent a notice of intent to sue xAI on February 13, 2026, alleging violations of the Clean Air Act.

The legal action centers on xAI’s installation and operation of 27 gas turbines to power the Colossus 2 data center, located in Southaven, Mississippi, without obtaining the necessary air permits. These turbines, capable of generating up to 495 megawatts of power – comparable to a conventional power plant – began operating late last year. The notice argues that xAI bypassed federal regulations designed to protect air quality and public health.

“Our communities are not playgrounds for corporations who are chasing profit over people,” stated Abre’ Conner, Director of Environmental and Climate Justice at the NAACP. “xAI’s first data center is already creating pollution for Mississippi’s neighbors in Memphis—a community already suffering from decades of disparity—and now they are polluting in Southaven, Mississippi. We will not stand by idly.”

The NAACP and SELC contend that xAI’s actions represent a deliberate disregard for environmental regulations and the well-being of local residents. The turbines emit pollutants including smog-forming nitrogen oxides (NOx), fine particulate matter and hazardous chemicals like formaldehyde, all linked to respiratory problems, heart disease, and cancer. The organizations estimate that the combined emissions from the 27 turbines could make the facility the largest industrial source of NOx in the 11-county Memphis metropolitan area.

“xAI has once again built a polluting power plant without any permits and without any notice to nearby communities,” said Patrick Anderson, SELC Senior Attorney. “There are no loopholes or exceptions—xAI is breaking the law while leaving local communities to deal with the consequences, and we plan to take them to court.”

This isn’t the first time xAI has faced scrutiny over its power infrastructure. The company’s first data center, Colossus 1, in South Memphis, Tennessee, also relied on unpermitted gas turbines. Following a similar notice of intent to sue from SELC on behalf of the NAACP, xAI removed its unpermitted turbines at Colossus 1 and subsequently obtained permits for the remaining 15 turbines. According to xAI officials, the company had planned to “copy and paste” its turbine strategy for Colossus 2.

The current legal challenge comes as the Memphis area already struggles with air quality issues. Memphis was recently identified as an “asthma capital” by the Asthma and Allergy Foundation of America, and both Shelby County, Tennessee, and DeSoto County, Mississippi, received an “F” grade for ozone pollution from the American Lung Association. The addition of xAI’s unpermitted turbines exacerbates these existing concerns.

“xAI is running a de facto power plant without an air permit, without necessary pollution controls, and without regard for families living as close as a half mile away,” stated Laura Thoms, Enforcement Director for Earthjustice.

The legal notice initiates a 60-day period before a lawsuit can be filed under the Clean Air Act. XAI has not yet responded publicly to the latest legal threat. The company is also planning a third data center in Southaven, Mississippi, but has not disclosed details regarding its power source or potential environmental impact. The outcome of this legal challenge could set a precedent for how data centers, with their substantial energy demands, are regulated in terms of air quality and environmental compliance.

In June 2025, xAI faced a separate lawsuit threat from the SELC and NAACP regarding air pollution from its Memphis data center, alleging the operation of over 400 MW of gas turbines without permits. That lawsuit alleged the turbines could emit over 2,000 tons of NOx annually. The Southern Environmental Law Center also noted that Memphis already had some of the worst air quality in the region and was deemed an asthma capital in 2024.