The NAACP plans to sue Elon Musk‘s Memphis, TN-based AI company, xAI, over concerns about air pollution stemming from a supercomputer facility allegedly operating gas turbines without proper permits.
Represented by the Southern Environmental Law Center (SELC), the NAACP filed its legal challenge on Tuesday as the Shelby County Health Department (SCHD) reviews xAI’s permit application, according to The Associated Press.
Activists and opponents say the facility is polluting predominantly Black neighborhoods in South Memphis.
The NAACP sent a letter to the SCHD and Memphis Light, Gas, and Water on May 29, demanding an emergency order to halt xAI’s operations or, at the very least, cite the company for violating clean air standards, AFROTECH™ previously reported.
“While data centers are becoming more prevalent across the country, there is a growing need to guarantee transparency regarding environmental and climate concerns, the burden these centers have on communities, and ensuring accountability for bad actors,” the letter states.
In June 2024, the Memphis Chamber of Commerce announced xAI’s plan to build a supercomputer, which was subsequently set up in an industrial park near factories and a Tennessee Valley Authority gas plant. By March 2025, xAI had also purchased a second, 1 million-square-foot site nearby, according to AP.
xAI claims to be utilizing emissions-reducing technology and investing billions in Memphis, including $35 million for a power substation, $80 million for a water recycling plant, and paying millions of dollars in taxes while creating hundreds of jobs.
Regarding the gas turbines that began operating without a permit, officials claimed a 364-day exemption, but the SELC states that no such exemption exists, and the deadline has passed. Critics argue that the turbines stress out the power grid and emit harmful, lung-irritating pollutants, including smog, nitrogen oxides, carbon dioxide, and formaldehyde.
“Indeed, with over 5,300 data center facilities across the country, many of these companies use large amounts of energy, water, and often heavily contribute to air pollution and the climate crisis,” the NAACP said in its letter. “Additionally, many data centers have highlighted they do not see a justification to track water usage. And due to the surge in artificial intelligence use, the energy demand is expected to increase exponentially in a way that will inevitably strain power grids.”
SELC alleges the operation violates the Clean Air Act and adds to highly elevated cancer risks in the area, per AP. The group petitioned the EPA and discovered 35 turbines on-site, more than double the 15 listed in xAI’s permit request, which would allow the SCHD to begin monitoring air quality.
At a community meeting in April, Brent Mayo, xAI’s vice president of operations, read a statement claiming the company wants to “strengthen the fabric of the community,” estimating that it will generate over $100 million in tax revenue by 2026.
“This tax revenue will support vital programs like public safety, health and human services, education, firefighters, police, parks, and so much more,” Mayo said, per AP.
