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U.S. Government Seeks Dismissal of Environmental Lawsuit Against xAI Citing National Security
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U.S. Government Seeks Dismissal of Environmental Lawsuit Against xAI Citing National Security

WireByte Staff · June 17, 2026

The U.S. Department of Justice has asked a court to dismiss an NAACP lawsuit against Elon Musk's xAI, citing national security. The suit concerns unpermitted gas turbines powering xAI's Colossus 2 data center in Memphis for its Grok AI model. The DOJ argues halting operations would jeopardize mission-critical military and security functions, threatening American national, economic, and energy security.

Key points

  • The U.S. Department of Justice (DOJ) has formally requested the dismissal of a lawsuit filed by the NAACP against xAI, the artificial intelligence company founded by Elon Musk.
  • The lawsuit, initiated last year by the NAACP through the Southern Environmental Law Center, targets xAI's Colossus 2 data center in Memphis, Tennessee, over its alleged use of unpermitted natural gas turbines to power AI operations.
  • The DOJ asserts that xAI's Grok AI model, which operates at the Colossus 2 facility, is one of only four AI models utilized by U.S. military and security agencies for "mission-critical operations" across classified networks.
  • Government lawyers argue that stopping the power supply to the xAI data center "threatens American national, economic, and energy security," thereby supporting xAI's and the state of Mississippi's prior requests for dismissal.
  • The Memphis facility, built in a rapid 19 days, officially powered on in July 2024 and became fully operational in May 2025, receiving 150 megawatts of power from local utilities.

The U.S. Department of Justice (DOJ) has intervened in an ongoing legal battle, asking a federal court to dismiss a lawsuit brought by the NAACP against Elon Musk's artificial intelligence firm, xAI. The core of the dispute revolves around xAI's Colossus 2 data center in Memphis, Tennessee, which the NAACP alleges has been using unpermitted natural gas turbines to power its high-demand AI operations, particularly its Grok large language model.

In its memorandum, the DOJ emphasized that interrupting the power supply to xAI's facility would pose a direct threat to American national, economic, and energy security. The government's filing explicitly states that the Grok AI model is vital for military and security agencies, being one of only four AI systems cleared for "mission-critical operations" across classified networks. This highlights the perceived strategic importance of advanced AI capabilities in national defense and intelligence.

The lawsuit, filed by the NAACP through the Southern Environmental Law Center, emerged after an investigation into the Memphis supercluster's power sources. The xAI facility, noted for its exceptionally fast construction of just 19 days, officially began operations in July 2024 and reached full operational capacity of 150 megawatts by May 2025, drawing power from Memphis Light, Gas, and Water (MLGW) and the Tennessee Valley Authority (TVA). The legal challenge likely pertains to the period before full grid connection, where the turbines might have been a primary power source.

The DOJ's intervention aligns with previous requests for dismissal from xAI and the state of Mississippi, underscoring a multi-party effort to safeguard the data center's operations. The outcome of this legal proceeding could set a significant precedent regarding the balance between environmental regulations and perceived national security interests in the rapidly evolving field of artificial intelligence infrastructure.

Sources

WireByte Staff — Editorial Team

The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.