Elon Musk's artificial intelligence company, xAI, won approval Tuesday to build a power plant in Southaven, despite strong opposition from local residents and environmental groups.
The facility will house 41 natural gas-burning turbines to power the company's nearby data centers, including its massive "Colossus 2" AI supercomputer.
The Mississippi Department of Environmental Quality (MDEQ) confirmed that the permit was approved after reviewing public comments.
"The draft permit met all legal and technical requirements for issuance," spokesperson Jan Schaefer said.
However, community members and advocacy groups sharply criticized the decision.
According to TheGuardian, Abre' Conner, director of environmental and climate justice at the NAACP, said, "MDEQ chose to bulldoze through a decision that silenced the very residents most harmed by it."
The Southern Environmental Law Center (SELC) joined the criticism, noting that the facility could become one of the largest polluters in Mississippi.
xAI has been operating more than a dozen temporary turbines at the site without federal permits for months.
Elon Musk's xAI wins permit to build power plant in Mississippi despite pollution concerns https://t.co/WEcSrJDsmq
— CNBC Tech (@CNBCtech) March 10, 2026
Residents Raise Alarm Over xAI Turbine Pollution
Residents have reported noise and air quality concerns, with pollutants including nitrogen oxides and formaldehyde.
These chemicals are linked to respiratory illnesses, asthma, heart problems, and certain cancers.
Both DeSoto and Shelby counties, where the company's data centers are located, have received failing grades for air quality from the American Lung Association.
Jason Haley, a Southaven resident and member of the local coalition Safe & Sound, said he has struggled with noise from xAI's turbines for months.
"This was not a thoughtful, phased development. It was an industrial surge imposed on our residential community," he said.
Hundreds of community members attended public hearings, all opposing the project.
xAI's plans go beyond the new power plant. The company intends to build another data center called "Macrohardrr" in a former warehouse in Southaven.
Combined with the Colossus 2 facility, these centers are part of Musk's strategy to expand AI operations and potentially support a future SpaceX IPO valued at $1.25 trillion after the merger with xAI, CNBC reported.
Legal action is already underway. The NAACP and SELC plan to sue xAI over the ongoing use of unpermitted turbines, claiming that the company underestimated pollution levels and failed to engage in proper environmental reviews.
Patrick Anderson, a senior attorney with SELC, said, "Mississippi state regulators appear to be more interested in fast-tracking xAI's personal power plant than conducting a thorough review of its impacts."
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