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Cancer-linked chemicals pumped into US neighborhoods by Elon Musk’s ‘illegal’ data center, lawsuit claims

by LJ News Opinions
July 17, 2026
in Technology
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Cancer-linked chemicals are being pumped into neighborhoods surrounding Elon Musk‘s massive xAI data center, according to a new federal lawsuit. 

The National Association for the Advancement of Colored People (NAACP) claimed in a statement that ‘xAI is operating 27 gas turbines without an air permit in Southaven, Mississippi, effectively building a power plant for its Colossus 2 data center, which powers the company’s chatbot, Grok.’

The lawsuit claims the turbines emitted, or had the potential to emit, smog-forming pollutants, fine particulate matter and formaldehyde, a known carcinogen, near homes, schools, and churches.

The pollutants can inflame the airways, penetrate deep into the lungs and bloodstream, and increase the risk of asthma, heart disease and cancer. 

Plaintiffs said the alleged violations exposed predominantly Black communities, which already suffer disproportionately high rates of respiratory illness, to additional harmful pollution.

The legal battle centers on xAI’s rapid expansion after the company built what it called the world’s largest AI supercomputer to train its chatbot, Grok.

Unable to secure enough electricity from the grid, the company allegedly built what the lawsuit describes as an unpermitted gas-fired power plant to keep the facility running.

The NAACP is now asking a federal judge to halt the turbines’ operation, impose financial penalties and require xAI to install pollution controls.

Musk’s xAI has invested more than $20 billion to build the data center, called MACROHARDRR, ​in Southaven with the full backing of Mississippi Governor Tate Reeves

Abre’ Conner, NAACP Director of Environmental and Climate Justice, said in a statement: ‘A data center should not be a potential death sentence for a community’s health. 

Echoing what is alleged in the complaint, he continued: ‘By looking to evade clear air laws to operate dirty turbines that emit pollution and known carcinogens, these companies are following a shameful, familiar pattern: asking Black and frontline communities to bear the toxic brunt of ‘innovation.”

The NAACP, represented by Earthjustice and the Southern Environmental Law Center, sued xAI and subsidiary MZX Tech in April.

Musk’s xAI has invested more than $20 billion to build the data center, called MACROHARDRR, ​in Southaven with the full backing of Mississippi Governor Tate Reeves.

It will be the company’s third data center in the greater Memphis area. xAI CFO Anthony Armstrong said the cluster of data centers will house ‘the world’s largest supercomputer’ with 2 gigawatts of computing power. 

The Daily Mail has contacted xAI for comment. Last month, xAI asked the court to dismiss the case, arguing that the NAACP lacks legal standing to sue.

xAI has argued that the data centers are ‘essential to the operation of cutting-edge artificial intelligence and other computing tools used by the US government and millions of users worldwide.’ Shutting them down would force operations to ‘precipitously shut down.’ 

The Colossus Gas Plant is located in Mississippi’s DeSoto County at 2875 Stanton Road South in Southaven, home to around 58,000 people, which is also near Memphis, Tennessee.

Earthjustice claims it captured thermal drone footage showing 'unpermitted' turbines operating at xAI¿s gas plant in Southaven. The lawsuit alleges that the turbines emit smog-forming pollution, fine particulate matter, and hazardous chemicals like formaldehyde

Earthjustice claims it captured thermal drone footage showing ‘unpermitted’ turbines operating at xAI’s gas plant in Southaven. The lawsuit alleges that the turbines emit smog-forming pollution, fine particulate matter, and hazardous chemicals like formaldehyde

The Colossus Gas Plant is located in Mississippi's DeSoto County at 2875 Stanton Road South in Southaven, home to around 58,000 people

The Colossus Gas Plant is located in Mississippi’s DeSoto County at 2875 Stanton Road South in Southaven, home to around 58,000 people 

Earthjustice claimed that xAI’s Southaven power plant has the potential to emit more than 1,700 tons of smog-causing nitrogen oxides (NOx) each year, a ⁠major ​source of smog in the greater Memphis area. ​

The group also alleged that the plant is estimated to emit 180 tons of fine particulate matter, 500 tons of carbon monoxide ​and 19 tons of cancer-causing formaldehyde. 

SELC Senior Attorney Ben Grillot said: ‘xAI’s continued operation of these turbines without a permit and without adequate pollution controls is not only illegal, but it’s also an insult to families living nearby who for months have expressed serious concerns about how air pollution from the company’s personal power plant could impact their health and well-being.’

The complaint alleges the emissions affect predominantly Black communities that already face higher rates of asthma and other respiratory illnesses. 

Southaven is about 10 miles outside of Memphis, Tennessee.

Southaven is about 10 miles outside of Memphis, Tennessee.

Cancer-linked chemicals are allegedly being pumped into neighborhoods surrounding Elon Musk's massive xAI data center, according to a new federal lawsuit.

Cancer-linked chemicals are allegedly being pumped into neighborhoods surrounding Elon Musk’s massive xAI data center, according to a new federal lawsuit.

It also notes that schools, churches and residential neighborhoods are located within a few miles of the facility. 

The complaint further alleges that xAI failed to obtain permits before building or operating the turbines and did not install pollution controls that could significantly reduce emissions. 

It asks the court to declare that xAI violated the Clean Air Act, halt operation of the turbines until the company complies with federal law, require the installation of the best available pollution-control technology, and impose civil penalties of up to $124,426 per day for each alleged violation. 

Last month, the Trump Administration asked a federal judge to block ​the NAACP lawsuit.

The administration told the court that the NAACP’s pursuit ​of civil penalties ​and an ⁠injunction to halt turbine operations would threaten national security and economic interests. 

NAACP’s Conner, in ​a statement, said: ‘Citizen suits are a bedrock insurance policy for communities to hold polluters accountable for decisions that cause them harm.’ 

Musk’s xAI was hit with another lawsuit last month by Mississippi residents, alleging the power is blasting ‘omnipresent ​and inescapable’ noise that has eroded their health and home ‌values.

The lawsuit claims Musk’s companies negligently failed to curb the disturbance and created a public nuisance through excessive ​and offensive noise. Three residents filed the case purportedly on behalf of ​a class estimated at more than 10,000 members. 

‘The artificial intelligence (AI) boom ⁠is wreaking havoc on communities across the United States’ by subjecting thousands ​of residents to near-constant noise and vibrations, the lawsuit said.

The plaintiffs are ​seeking damages for alleged emotional distress, reduced property values and other harms, as well as disgorgement of an unspecified amount in profits.

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Tags: dailymailElon MuskMississippisciencetech
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