Musk’s xAI gets permit for Mississippi power plant

Mississippi regulators approved a permit for xAI to build a power plant with 41 natural gas turbines in Southaven to power its nearby data centers.

The Mississippi Department of Environmental Quality said it approved the permit after considering public comments and said the draft met legal and technical requirements.

The NAACP and the Southern Environmental Law Center sought a delay, saying the meeting conflicted with primary election voting, and said they planned to sue.

The NAACP, represented by the Southern Environmental Law Center, alleged xAI used temporary turbines without federal permits and understated emissions.

XAI, now owned by SpaceX after a merger was announced in February, has been operating more than a dozen temporary turbines at the site and plans a data center called Macrohardrr in Southaven near its Colossus facilities in Memphis.

🔗 Source: CNBC

🧠 Food for thought

Implications, context, and why it matters.

The permit approval fits a broader run of regulatory friction for xAI

This threatened lawsuit marks the NAACP’s second such move, after an earlier notice tied to unpermitted turbines at xAI’s Colossus 1 data center facility in Memphis 1.
xAI sidestepped a full court fight in that earlier case by securing permits for its remaining 15 turbines after the notice of intent to sue was filed 2.
Environmental groups say xAI is effectively operating a power plant by using unpermitted natural gas turbines for the data center, which they argue breaks the federal Clean Air Act 2.
The notice of intent to sue says the 27 unpermitted turbines in Southaven could make the site the largest industrial source of smog-forming nitrogen oxides (NOx) in the 11-county Memphis metropolitan area 2.

AI’s growing power demand is clashing with nearby communities

The Southaven fight echoes a broader pattern, as residents nationwide push back on large data centers that pressure local electricity and water systems 3.
People living near the Southaven turbine site describe “excruciating” nonstop noise, while separate reporting says a petition has more than 1,200 signatures 4, 5.
Water use is also drawing scrutiny, since AI cooling can consume huge volumes. xAI bought a water recycling facility for its Memphis operations to reduce reliance on the local aquifer 4.
Community opposition can derail projects, with Amazon and Microsoft walking away from data center plans in other locations after local backlash 3.