DOJ moves to dismiss lawsuit targeting Elon Musk’s xAI facility in Mississippi

The Justice Department moved to intervene in and dismiss a private lawsuit seeking to shut down an artificial intelligence facility operated by Elon Musk’s xAI in Southaven, Mississippi, citing federal enforcement authority, national security concerns and executive branch discretion as grounds for the action.

The Environment and Natural Resources Division filed the motion in U.S. District Court for the Northern District of Mississippi, according to the department. The case centers on allegations by private litigants that xAI and its subsidiary MZX Tech LLC violated Clean Air Act permitting requirements at the facility, which trains and develops AI models. Mississippi state regulators, who administer the relevant permitting program, had previously determined no permit was required.

The plaintiffs are seeking an injunction and damages that, if granted, could cut power to the facility.

Associate Attorney General Stanley Woodward framed the intervention as a constitutional matter, saying in a statement that “ultimate responsibility for enforcing federal law belongs to the Executive Branch, not private interest groups.” Woodward said the department is committed to “maintaining that constitutional order while protecting national security and promoting American energy and innovation.”

Principal Deputy Assistant Attorney General Adam Gustafson of the Environment and Natural Resources Division said the department “will not sit idly by while private organizations use environmental laws to undermine our national security,” adding that the case reflects the division’s work to “unleash American energy for the sake of innovation and security.”

In its filing, the Justice Department argued the Clean Air Act explicitly grants the federal government authority to intervene in citizen suits, and that the Constitution vests enforcement responsibility in the executive branch, including the power to exercise enforcement discretion in the national interest.

DOJ also cited an executive order issued by President Donald Trump directing federal agencies to prioritize AI innovation and security across government. The department noted that federal agencies use AI to help protect Americans and argued that private environmental enforcement actions can threaten technological development, energy independence and national security.

The motion to dismiss contends that allowing the lawsuit to proceed could cut power to the facility during what the department described as an energy emergency and impede the use of artificial intelligence for national defense purposes.

The xAI facility in Southaven is an AI data facility supporting the company’s AI development operations.