Elon Musk’s venture, now called SpaceXAI after a recent merger, faces a lawsuit alleging pollution from its Colossus data center in Memphis, Tennessee. The National Association for the Advancement of Colored People (NAACP) filed the case after unpermitted gas turbines were found operating at the facility. The complaint seeks an injunction that would require SpaceXAI to install the best available pollution‑control technology for the turbines and to impose daily penalties of up to $124,426 for each violation. The NAACP argues that without these measures, emissions could surge in nearby neighborhoods that are predominantly Black and already vulnerable to environmental harms.
Former President Donald Trump attempted to intervene, contending that the Environmental Protection Agency (EPA) possesses the authority to dismiss Clean Air Act lawsuits at the president’s discretion. Trump asserted that allowing citizens to pursue large civil penalties against AI firms rushing to bring data centers online would “not serve the public interest,” especially in light of his AI Action Plan. A federal judge, however, rejected the argument, finding no legal basis for the EPA to unilaterally throw out the suit. The case will proceed, and SpaceXAI must now address the NAACP’s demands.