SpaceXAI, the AI division of Elon Musk's SpaceX, has lost its attempt to dismiss a lawsuit filed by the NAACP over air pollution concerns related to its data centers in the Greater Memphis area. The lawsuit, filed in April 2026, alleges that SpaceXAI violated the Clean Air Act by operating 27 gas turbines in Southaven, Mississippi, without proper permits and without considering the health and safety of nearby residents.
The turbines, which emit smog-forming pollutants and particulate matter, have been a source of community backlash for years. SpaceXAI argued in its motion to dismiss that the turbines were 'mobile' and thus exempt from permitting requirements. The company also claimed that the NAACP lacked the right to sue under the Clean Air Act and that such community group lawsuits were unconstitutional.
A federal judge in Mississippi rejected these arguments, stating that the plaintiffs had statutory standing under the Clean Air Act and that the turbines were not 'mobile sources' under Mississippi's State Implementation Plan. The judge also ruled that the citizen suit provision did not violate the Constitution or the private nondelegation doctrine, allowing the lawsuit to proceed.
The decision comes shortly after the same court denied a Department of Justice request to end the case against SpaceX. SpaceXAI has not yet responded to a request for comment on the ruling.