The U.S. Department of Justice moved Monday to dismiss a Clean Air Act lawsuit against Elon Musk’s artificial intelligence company xAI, arguing the case endangers AI projects critical to national military operations. The motion, filed June 16, 2026, shields xAI and its subsidiary MZX Tech from a suit brought by the NAACP in April.
The NAACP alleges xAI operates at least 27 unpermitted gas turbines at the Colossus facility in Southaven, with only 15 of up to 46 turbines holding valid permits. The civil rights group demands a shutdown of operations until xAI secures proper permits and installs pollution controls, and seeks daily penalties of $124,000 per violation. The surrounding community is predominantly Black, adding environmental justice concerns to the dispute.
The DOJ contends the lawsuit could jeopardize AI projects supporting military functions. The Colossus site is central to xAI’s large-scale training operations, with plans to spend $2.8 billion on additional gas turbines, signaling a major energy expansion.