xAI Gains Mississippi Approval for Natural Gas Power Plant Amidst Pollution Concerns
Mississippi regulators have authorized xAI, now a subsidiary of SpaceX, to construct a power plant with 41 natural gas-burning turbines in Southaven, Mississippi. The plant is intended to power the company’s growing data center operations in the region, but the decision has sparked controversy and legal challenges from environmental and civil rights groups.
Regulatory Approval and Community Opposition
The Mississippi Department of Environmental Quality (MDEQ) approved the permit for xAI’s subsidiary, MZX Tech LLC, on Tuesday, March 10, 2026, after considering public comments and community concerns. CNBC reports that MDEQ spokesperson Jan Schaefer confirmed the approval via email.
However, the decision was met with immediate backlash from the NAACP and the Southern Environmental Law Center (SELC). They argued that the hearing was rushed and deliberately scheduled on Election Day, potentially suppressing voter turnout and silencing the voices of affected residents. Abre’ Conner, director of environmental and climate justice at NAACP, stated that the MDEQ “chose to bulldoze through a decision that silenced the very residents most harmed by it.”
xAI’s Expansion and Infrastructure Plans
xAI is rapidly expanding its infrastructure in the Memphis and Southaven area. The company already operates two data centers – Colossus 1 and Colossus 2 – in Memphis, Tennessee and is planning to build a large data center in Southaven, dubbed Macrohardrr, within a former GXO Logistics facility.
The company has been utilizing over a dozen temporary turbines at the Southaven facility for months, claiming no federal permit was required. The new power plant will provide a more permanent and substantial power source for these and future data centers. This expansion is occurring as Elon Musk’s SpaceX, which now owns xAI following a merger in February, prepares for a potential initial public offering (IPO) valued at $1.25 trillion.
Environmental and Legal Concerns
Opponents of the power plant raise concerns about air and noise pollution. Residents have reported noise disturbances from the temporary turbines, and environmental advocates argue that xAI underestimated the potential pollution emitted by the plant in its permit application, specifically concerning nitrogen oxides, formaldehyde, and particulate matter.
The NAACP, represented by the SELC, intends to sue xAI over the employ of natural gas-burning turbines without federal permits. They also criticize the lack of community engagement and thorough environmental reviews conducted by xAI.
Jason Haley, a Southaven resident and member of the local coalition Safe & Sound, expressed disappointment with the MDEQ’s decision, highlighting ongoing struggles with turbine noise.
Industry Context and Power Demands
The demand for power from data centers is increasing significantly as tech giants like Microsoft, OpenAI, and Google invest heavily in AI infrastructure. Training and running AI models, such as xAI’s Grok, require substantial computing power and electricity.
Recently, tech executives, including those from xAI, pledged to supply their own power for their facilities during a meeting with the White House, though these pledges are non-binding.
Patrick Anderson, a senior attorney at SELC, criticized the regulators for prioritizing xAI’s business ambitions over the concerns of local residents.