XAI wins permit to build power plant in Mississippi: CNBC

Elon Musk’s xAI has secured a permit to construct a power plant in Southaven, Mississippi, featuring 41 natural gas-burning turbines to support its data centers in the region. The Mississippi Department of Environmental Quality (MDEQ) approved the permit on March 10, following a contentious public hearing in February and significant community opposition. The facility, operated by xAI affiliate MZX Tech LLC, will supply power to Colossus 2 in Memphis and a new data center, Macrohardrr, under development in Southaven.

Critics, including the NAACP and the Southern Environmental Law Center (SELC), raised concerns about the permit process, arguing that the MDEQ rushed the decision to coincide with Mississippi’s federal primary elections, limiting participation from affected residents. The hearing was held in Jackson, over 200 miles from Southaven, further complicating access for local stakeholders. Environmental advocates highlighted potential health risks, citing projected annual emissions of 19.07 tons of hazardous air pollutants and over 6.4 million tons of greenhouse gases. Residents also reported noise pollution and health impacts from existing “temporary” turbines at the site according to local reports.

MDEQ defended the decision, stating the permit aligns with state and federal regulations and that the process adhered to standard monthly board meeting practices. xAI representatives emphasized compliance, asserting the project would not harm nearby communities. Local officials, including Southaven Mayor Darren Musselwhite, framed the development as economically beneficial and safe.

The NAACP and SELC have indicated plans to challenge the permit, alleging regulatory shortcuts and environmental injustices. xAI’s expansion underscores the growing demand for energy-intensive infrastructure in AI, with the company recently merging xAI with SpaceX in a $1.25 trillion valuation. The outcome highlights tensions between technological growth, regulatory oversight, and community health concerns in industrial development.