Department of Justice sides with Elon Musk’s xAI in Southaven lawsuit
The U.S. Department of Justice is intervening on behalf of xAI in a lawsuit filed by the NAACP, which alleges xAI is illegally operating gas turbines to power its Southaven data centers. Residents complain about noise, while xAI and state officials argue the operations are crucial for economic development and national security. The Mississippi Department of Environmental Quality has approved air permits for xAI's permanent gas turbines.
The U.S. Department of Justice has intervened in a lawsuit against Elon Musk's xAI, which was filed by the NAACP and claims the company is illegally operating gas turbines to power its data centers in Southaven and Memphis, Mississippi. xAI has asked the court to dismiss the case, arguing the NAACP lacks legal standing. Mississippi Governor Tate Reeves and Cameron Stanley, Chief Digital and Artificial Intelligence Officer at the Department of Defense, have also urged the court to dismiss the lawsuit.
xAI began operating 18 mobile, temporary turbines last summer in Southaven, increasing the number to 57. Southaven residents have filed a separate class action lawsuit, citing intolerable noise, disrupted routines, sleep loss, and decreased property values. The Southern Environmental Law Center, representing the NAACP, contends that the turbines require air permits due to pollution, despite Mississippi law allowing mobile generators to operate without a permit for under a year.
xAI plans to operate the temporary turbines until a permanent power plant is completed early next year. In March, the Mississippi Department of Environmental Quality approved air permits for the permanent gas turbines. Governor Reeves highlighted xAI's $20-billion investment in Mississippi data centers, projecting thousands of jobs and stable electricity rates, and warned that shutting down the turbines would significantly harm the state's economy.
Both Governor Reeves and Mr. Stanley emphasized that halting xAI's operations poses a national security risk, as xAI's Grok Gov Mode AI model provides critical support to the U.S. military. The interventions occurred shortly after xAI's parent company, SpaceX, went public.