Elon Musk’s SpaceXAI is stuck facing a lawsuit over alleged data center pollution after Donald Trump failed to convince a judge that his Environmental Protection Agency (EPA) has complete control over all Clean Air Act lawsuits and can dismiss any suit at whim.

Soon after unpermitted gas turbines were discovered powering Musk’s giant Colossus data center in Memphis, Tennessee, the NAACP sued. Its lawsuit sought an injunction requiring xAI (which, following a merger, is known now as SpaceXAI) to use the best available pollution control technology when operating the turbines and ordering penalties up to $124,426 per day per violation. Without such remedies, the turbines risked drastically spiking pollution in already vulnerable neighborhoods housing predominantly Black communities nearby, the NAACP argued.

To block the lawsuit, Trump tried to intervene, arguing that the EPA had the power to unilaterally dismiss lawsuits any time the president decides against enforcing the Clean Air Act. According to Trump, it would supposedly “not serve the public interest” if citizens were allowed to seek massive civil penalties to punish polluting AI firms that were trying to get data centers operational as fast as possible to support Trump’s AI Action Plan.

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On the heels of the hottest summer on record and a United Nations report warning that global temperatures are likely to push climate risks to “increasingly dangerous heights,” the Trump administration overturned most of a Biden-era rule limiting climate pollution from power plants, the second-largest source of greenhouse gas emissions.

The Environmental Protection Agency announced a final plan Monday that guts the 2024 Carbon Pollution Standards, which the agency said exceeds its authority under the Clean Air Act by requiring control technologies “that are not adequately demonstrated.” The agency also proposed revoking “all remaining GHG emissions requirements for power plants,” arguing their emissions “have no material impact on climate change.”

The plan to revoke the Carbon Pollution Standards was initially revealed last spring.

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On the heels of the hottest summer on record and a United Nations report warning that global temperatures are likely to push climate risks to “increasingly dangerous heights,” the Trump administration overturned most of a Biden-era rule limiting climate pollution from power plants, the second-largest source of greenhouse gas emissions.

The Environmental Protection Agency announced a final plan Monday that guts the 2024 Carbon Pollution Standards, which the agency said exceeds its authority under the Clean Air Act by requiring control technologies “that are not adequately demonstrated.” The agency also proposed revoking “all remaining GHG emissions requirements for power plants,” arguing their emissions “have no material impact on climate change.”

The plan to revoke the Carbon Pollution Standards was initially revealed last spring.

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The Trump administration is quietly considering a rule change that could make it easier for polluters to build facilities—including certain gas plants and diesel generators that power data centers—with little to no notice to the public.

On Wednesday, the Environmental Protection Agency held a public hearing on a proposed rule change that would hand the power to states to decide how the public participates in the permitting process for certain new sources of air pollution. The proposed rollback comes as data centers face greater pushbackacross the US, with many communities using the permitting process to try to slow down development. Any changes could have major consequences for how ordinary people are given notice about new or expanded polluting facilities coming into their neighborhoods.

“As someone actively working in communities with data centers, I know this to be fundamentally true: People want to have a say,” Vanessa Lynch, a Pennsylvania organizer with Moms Clean Air Force, said at the EPA hearing.

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