Baltimore, known for being a leader in medicine and technology as well as for its fiercely community-driven residents, is one of many cities trying to determine how to grapple with some of AI’s most pressing issues.
And recently, the city has been sounding the alarm.
Artificial intelligence is changing the way we live and work. In many ways, the tools are wildly helpful—solving business problems, advancing medicine, and even helping solopreneurs thrive without a team.
However, the technology comes with some worrisome drawbacks and, given the lack of federal oversight, the risks are beginning to reshape local politics.
That seems especially true in Baltimore, where just last week the city sued Elon Musk’s company xAI over its chatbot Grok. SpaceX, the parent company of xAI, along with the X social network, are also named as defendants.
Filed in the Baltimore City Circuit Court, the lawsuit argues that both the xAI platform and Grok have already been used to generate 3 million sexualized images between December 29, 2025, and January 8, 2026; 23,000 of those images appeared to have depicted children, according to researchers at the Center for Countering Digital Hate.
“Baltimore residents have a reasonable expectation that they will not be exposed to this illegal content on X, and that X will not harass its own customers with Grok-generated deepfakes,” the complaint read.
Prior to the lawsuit, other smaller suits have been filed. In March, three Tennessee teenagers sued xAI, alleging that the tools were used to turn their likenesses into explicitly sexual images.
The plaintiffs alleged that their mental health has suffered as a result of the images, which also have their name and school attached to the files.
In a post on X, the platform contended: “We remain committed to making X a safe platform for everyone and continue to have zero tolerance for any forms of child sexual exploitation, non-consensual nudity, and unwanted sexual content.”
Fast Company reached out to X but did not hear back by the time of publication.
In a statement, per NBC News, Baltimore Mayor Brandon M. Scott said that this kind of technology has the ability to destroy lives.
“Our city will not stand by and allow this to continue,” Scott said. “[It’s] a threat to privacy, dignity, and public safety, and those responsible must be held accountable.”
Charm city offensive
The suit makes Baltimore the first city to sue Musk’s companies over their AI capabilities. But it’s not the only fight over AI woes happening within city lines.
Baltimore is already the 44th-largest data center hub in the nation, with 17 current data centers. Now concerns over energy consumption, water shortages, and environmental issues have residents pushing back on new data center construction.
At Johns Hopkins University, construction of its new Data Science and AI (DSAI) institute, which is not exactly a data center but a hub of AI research, education, and advancement, is already underway.
Given that Baltimore has long been a hub for pioneering medical and technology research—with JHU at the heart of those efforts—it makes sense that the university would be focused on technology advancements.
Founded in 1876 as the first research institution in the U.S., it’s credited with a number of majorly influential developments, from introducing rubber surgical gloves in 1889 to developing the first rechargeable pacemaker in the 1970s, as well as the widely used COVID-19 tracking map in 2020.
With JHU and Johns Hopkins Hospital attracting top talent, it also has long led the nation in terms of the federal funding it receives—by a long shot.
In 2024, the university acquired a record-breaking $3.4 billion, about $1.6 billion more than the second-place university. However, the following year, due to President Donald Trump’s federal funding cuts, it experienced a sharp decline in financial research support.
Still, JHU’s long and inspirational history of innovation hasn’t insulated it from criticism over its AI ventures. The new project, which is expected to be complete in 2029, has unsettled locals, to say the least.
Prior to its start, petitions circulated around the city, protestors took to the streets, and a cease-and-desist letter was sent to the university. On the day construction began, which included cutting down the neighborhood’s beloved northern red oak trees that lined the street, residents came out to make their feelings known.
Presently, signs that read “Shame on JHU” appear on the street across from the construction site.
Fast Company reached out to JHU for comment and was directed to a public statement, which explained that the project is not a data center but a space for “classrooms, laboratories, faculty offices, and collaborative workspaces.”
The statement also noted that an estimated 4,490 jobs will be created during the preconstruction and construction phases and that the project is set to generate “$505 million in net new economic impact within Baltimore City alone and more than $800 million across Maryland.”
“Residents across our city have had enough”
While JHU’s project is proceeding as planned, others are facing greater obstacles.
Earlier this month, City Council President Zeke Cohen introduced a bill that could place a one-year moratorium on Baltimore data centers. The legislation cites major environmental concerns, which some say disproportionately impact minority communities who live in underserved neighborhoods—given that’s where the centers are typically placed.
“Baltimore is one of the most environmentally degraded cities in our country,” Cohen said, per The Baltimore Sun. “The legacy of redlining, racial housing covenants, and disinvestment means that majority Black neighborhoods have substantially worse air quality than white neighborhoods.”
Cohen also cited the halting of the Baltimore Peninsula transmission project by the Baltimore Gas and Electric Company (BGE) in March amid criticism from Maryland Senate President Bill Ferguson over skyrocketing energy costs.
Those energy costs are something that Baltimoreans have, sadly, grown extraordinarily accustomed to. Since 2010, BGE’s gas delivery rates have increased by 246%.
Its electric delivery rates increased by 92%. And just this year, rates have already risen twice.
Cohen said the cost of energy is driving an affordability crisis in the city, noting, “BGE bills have skyrocketed and residents across our city have had enough. People are choosing between paying for gas and electricity or their rent or mortgage.”
As residents struggle to pay their bills amid already staggering energy costs, new data center construction has become an even bigger concern. Those worries have prompted growing support for a Baltimore Public Power campaign, led by Councilmember Mark Conway, who represents the city’s 4th District.
Shelby Averys, an organizer who updates Baltimore Public Power’s social media accounts, said data centers will undoubtedly drive up costs even further for Baltimore residents.
“Big Tech is forcing regular people like us to fund their polluting and unwanted data centers through our skyrocketing utility bills so that a handful of executives can get even richer,” she told Fast Company, adding, “By moving to a public utility, Baltimore can take control over how its energy is used and ensure that we prioritize affordable, clean, and reliable energy for Baltimoreans, not diverting our energy to data centers that nobody wants.”
From energy to deepfakes, the AI battles facing Baltimore and other cities across the country aren’t likely to be solved overnight, or anytime soon for that matter.
AI’s big gains also mean big downsides—and more complicated battles. But Baltimore, known for its scrappiness, vibrant city life, and extraordinarily dedicated community members, isn’t likely to fold to Big Tech without a fight.