The Trump administration has stepped into a legal battle involving Elon Musk’s artificial intelligence company xAI, asking a court to dismiss a lawsuit over air pollution linked to a large data centre project in Tennessee. The case centers on allegations that xAI operated natural gas turbines without proper permits to power its Colossus 2 facility in Memphis.
The lawsuit was filed in April by the National Association for the Advancement of Colored People under the Clean Air Act. The civil rights group claims that dozens of turbines were built and operated without authorization in nearby Southaven, Mississippi. It argues that the emissions from these turbines expose local communities to harmful pollution linked to asthma, respiratory illness, heart disease, and cancer risks.
According to the complaint, a significant portion of the affected population in the surrounding area is Black, raising concerns about environmental justice and unequal exposure to industrial pollution. The NAACP is seeking legal action to stop operations it says violate federal environmental law.
In response, the US Department of Justice filed a motion this week asking the court to dismiss the lawsuit. The government argued that efforts to shut down the power supply for the data centre could threaten national security, particularly because xAI’s infrastructure is reportedly tied to artificial intelligence systems used in defense operations.
The Justice Department claimed that blocking the turbines would interfere with energy supply needed to support AI technology linked to military functions. It also argued that enforcement decisions on such matters fall within the executive branch’s authority, suggesting that civil lawsuits should not override federal priorities in cases involving national security concerns.
Adam Gustafson, who leads the Justice Department’s environment and natural resources division, said the government would not allow environmental laws to be used in ways that undermine national security interests. The filing reflects a broader argument that critical AI infrastructure should be protected due to its strategic importance.
xAI, a subsidiary linked to Elon Musk’s broader technology network, has not publicly responded to the lawsuit. The company is building large-scale computing infrastructure designed to support advanced artificial intelligence systems, which are increasingly used in government and defense applications.
Environmental advocacy groups representing the NAACP strongly criticized the government’s intervention. Earthjustice, which is involved in the case, called the move an attempt to shield xAI from accountability. It argued that the administration is trying to limit the ability of courts and communities to enforce environmental protections.
Legal experts have also raised concerns about the Justice Department’s position. Some environmental law scholars argue that the motion could weaken the enforcement of the Clean Air Act by giving the executive branch greater control over whether citizen-led lawsuits can proceed. They warn that such a shift could reduce accountability for companies accused of violating pollution standards.
The dispute highlights a growing conflict between environmental regulation and the rapid expansion of artificial intelligence infrastructure. Data centres require large amounts of energy, and companies are increasingly turning to gas-powered systems to meet demand. Critics say this raises serious environmental risks if proper oversight is not enforced.
Supporters of the government’s position argue that AI systems are becoming essential to national security operations, especially in defense and military planning. Court testimony cited the use of xAI’s Grok model in military contexts, suggesting that disruptions to its energy supply could impact operational capabilities.
The case remains ongoing, with the court yet to decide whether to grant the Justice Department’s request to dismiss the lawsuit. The outcome could shape how future environmental challenges against large-scale AI and energy projects are handled in the United States.
