SpaceX loses bid to toss NAACP lawsuit over Memphis data center air pollution

SpaceX's AI division lost its motion to dismiss an NAACP lawsuit alleging Clean Air Act violations from gas turbines powering data centers in the Memphis area, according to CNBC. The suit, filed in April 2026 by the Southern Environmental Law Center and Earthjustice on behalf of the NAACP, claims the company installed and operated 27 gas turbines in Southaven, Mississippi between August and December 2025 without an air permit.

SpaceXAI argued the turbines were mobile sources exempt from permitting and that the NAACP lacked standing to sue. The judge rejected both arguments, ruling the plaintiffs have statutory standing under the Clean Air Act, the turbines are not mobile sources under Mississippi's implementation plan, and the citizen suit provision is constitutional. The case will proceed in federal court in Mississippi.

The decision follows a ruling two weeks earlier in which the same court denied a Department of Justice request to end the case. SpaceX did not immediately respond to a request for comment.

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SpaceX loses bid to toss NAACP lawsuit over Memphis data center air pollution — CNBC