Elon Musk’s AI company, xAI, is facing growing backlash, as the NAACP, along with several environmental groups, recently filed a legal appeal. They’re challenging a permit that allows xAI to run gas-burning turbines at its massive supercomputer facility in Memphis, TN, according to CNBC.
The Southern Environmental Law Center (SELC) filed the complaint on behalf of the NAACP and the youth-led group Young, Gifted & Green.
At the core of the dispute: air pollution concerns. When xAI arrived in Memphis in June 2024, it said the turbines at the data center were temporary and small enough to not require permits. But over time, residents, many from majority-Black neighborhoods, began reporting foul odors and worsening air quality, CNBC reports.
Despite the outcry, the Shelby County Health Department issued a permit on July 2. It allows xAI to operate up to 15 turbines. The department agreed with xAI’s claim that these are “nonroad engines,” a category that lowers its restrictions.
In its appeal, the NAACP and SELC say the turbines were misclassified. They argue this violates the Clean Air Act and puts residents’ health at risk.
According to CNBC, the turbines release pollutants like nitrogen oxides and formaldehyde. Both are linked to respiratory illnesses and increased risk of death, especially in communities already burdened by industrial pollution.
“Our health shouldn’t be threatened at the hands of billionaires who circumvent the law,” said NAACP CEO Derrick Johnson, per CNBC.
NAACP Dispute With xAI Focuses On Environmental Racism
This isn’t the first time the NAACP has taken action against xAI in Memphis. The group recently demanded that the facility shut down, citing environmental racism and a lack of transparency with nearby Black communities, AFROTECH™ previously reported.
The site is located near Southwest Memphis, a historically Black neighborhood with a long history of industrial pollution. Now, the legal fight highlights the tension between environmental justice and Big Tech expansion.
In a statement to CNBC, xAI said it was “disheartened (but not surprised)” by the appeal. The company called it “baseless” and “politically driven,” further insisting xAI is following all local, state, and federal laws.
The xAI NAACP legal challenge comes as the company races to compete with OpenAI, Google, and Meta in the AI arms race.
Beyond Memphis: xAI NAACP Lawsuit Compounded by Grok And AI Companion Controversies
The Memphis case is just one of xAI’s controversies of late. CNBC reports that its chatbot, Grok, recently generated antisemitic content on X (formerly Twitter). It praised Nazi leader Adolf Hitler — a glitch the company blamed on a faulty code update. XAI apologized days later.
Then came more trouble. NBC News found that Grok’s new AI characters, called “Companions,” pressured users into sexually explicit or violent conversations. The tests raised new concerns about AI safety and ethical development.
What’s Next?
In Memphis, advocates — including the NAACP and local groups — plan to keep pushing for accountability in court and beyond.
As AI evolves, the fight in Memphis sends a clear message: Progress must not come at the expense of communities who have the right to clean air.
