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DOJ May Back Musk’s AI Firm in Mississippi Power Plant Dispute

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The Justice Department signaled willingness to intervene in a lawsuit targeting xAI, Elon Musk’s AI venture now owned by SpaceX. The case, brought by the NAACP, alleges the company ran 27 unpermitted gas turbines to power its Colossus 2 data center in Southaven, Mississippi, creating a de‑facto power plant.

The civil‑rights group claims the turbines emit roughly 1,700 tons of smog‑forming pollutants each year, affecting a predominantly Black neighborhood. xAI argues the units are mobile, temporary generators and therefore exempt from strict air‑permit rules, insisting gas turbines are cleaner than coal or diesel alternatives.

Department of Justice attorney Adam R. F. Gustafson wrote that a ruling inconsistent with U.S. policy to preserve AI leadership could harm national security and economic competitiveness. By seeking more time to evaluate the suit, the DOJ positions itself on the side of the tech industry, while the NAACP pushes for a Clean Air Act injunction that could force the turbines offline.