The Department of Justice on Monday asked a federal court to toss an environmental lawsuit against Elon Musk’s xAI, asserting that shutting down the power plant supporting the company’s artificial intelligence data center would harm national security by threatening military access to the Grok AI system. The suit, filed by the NAACP and several environmental groups, alleges that xAI’s power plant in Southaven, Miss., is operating without required Clean Air Act permits and running 57 turbines with no pollution controls.
The plant powers xAI’s Colossus 2 data center just across the state line in Memphis, Tenn., which hosts the Grok artificial intelligence chatbot. The lawsuit, which was brought by the NAACP, the Southern Environmental Law Center, and Earthjustice, demands penalties of roughly $124,000 per day per violation and an injunction forcing the company to cease operation of the turbines.
The Justice Department’s intervention came in the form of a memo signed by Associate Attorney General Stanley Woodward Jr., who argued that the suit “seeking to shut off the power supply for artificial-intelligence innovation that supports the Department of War’s military operations” threatens national security. Woodward also asserted that the executive branch should have unchallenged authority to stop environmental lawsuits brought by private groups or individuals.
“It’s remarkable for the United States to intervene on behalf of a polluter in a case like this,” said Laura Thoms, director of enforcement at Earthjustice, which represents the plaintiffs. “Ordinarily, they would intervene to enforce the law.”
An accompanying filing by Cameron Stanley, the Defense Department’s AI official, stated that a version of Grok has been used in an automated targeting and intelligence platform in strikes against Iran. Stanley argued that in the event of armed conflict or other exigent circumstances, there is “a significant likelihood of an immediate and substantial escalation in AI inference demands for Grok Gov Models.”
The NAACP alleges that the Southaven plant is one of the largest single industrial sources of nitrogen oxide in the United States and a significant source of particulate matter and formaldehyde, disproportionately affecting children, older adults, and low-income or minority households.
xAI has argued that the turbines are temporary and exempt from more stringent permit rules. A memo from the Justice Department also contended that the Clean Air Act gives the executive branch the authority to block private enforcement actions.
“We feel very confident about defeating these arguments, but it’s essentially a massive power grab for the executive branch,” Kym Meyer, litigation director at the Southern Environmental Law Center, told The Washington Post.
In a statement, Abre’ Conner, the NAACP’s director of Environmental and Climate Justice, said the government should be enforcing clean air laws rather than shielding polluters. “This should not be up for debate, and the NAACP will continue to stand up for democracy and against federal bullying and authoritarianism,” Conner said.
Thoms also said in a statement: “This isn’t about national security; it’s a desperate attempt to protect wealthy tech companies from obeying the laws meant to protect people from pollution — turning our communities into sacrifice zones so companies can build and profit from data centers quicker.”