Mississippi regulators have officially approved a permit for Elon Musk’s xAI to operate a 41-turbine natural gas power plant in Southaven. The Tuesday ruling by the MDEQ Permit Board allows the company to establish a permanent energy solution for its “Colossus 2” and “Macrohardrr” datacenters. The decision comes despite a 1,200-signature petition from residents concerned about noise and air quality.
The 41-turbine facility is expected to generate approximately 1.2 gigawatts of power, making it one of the largest private energy projects in the state. This power is essential for xAI’s goal of operating nearly 2 gigawatts of total AI computing capacity by the end of the year. Musk has praised the state’s “immeasurable pace” in facilitating the project’s rapid construction.
The NAACP has condemned the MDEQ’s decision, calling it a “bulldoze” through a process that silenced frontline communities. The group noted that the state refused to move the hearing from Election Day, making it difficult for residents to attend. Furthermore, the NAACP claims xAI has been violating the Clean Air Act by operating 27 unpermitted turbines at the site since late last year.
Environmental risks are a primary focus for opponents, who warn that methane gas turbines release carcinogenic formaldehyde and fine soot. The surrounding area in North Mississippi and Memphis already suffers from poor air quality, and activists fear this facility will exacerbate the crisis. The Southern Environmental Law Center (SELC) has labeled the plant a “dirty facility” that puts thousands of families at risk.
Despite the ongoing controversy, xAI’s $20 billion investment has been hailed by Governor Tate Reeves as a transformative win for the “Digital Delta.” The project is expected to create hundreds of high-tech jobs and set a new standard for AI infrastructure. As the legal battle looms, the facility stands as a symbol of the conflict between high-speed industrial growth and local environmental rights.