Mississippi Regulators Hold Hearing on xAI Data Center Expansion Amid Environmental Lawsuit Threat

NAACP threatens to sue xAI over alleged Clean Air Act violations for new gas-fired power plant to power Colossus II data center

Published on Feb. 19, 2026

Got story updates? Submit your updates here. ›

Mississippi regulators are hosting a public hearing on Tuesday over plans by Elon Musk's xAI to build a gas-fired power plant to power its Colossus II data center in Memphis, Tennessee. The NAACP has threatened to sue xAI, accusing the company of violating federal law by installing and operating gas turbines without the necessary air permits.

Why it matters

This case highlights the growing tensions between tech companies' need for energy-intensive data centers and the environmental impact on local communities, especially those with large minority populations. The NAACP's lawsuit threat alleges xAI is contributing to poor air quality and harming public health in the Memphis area.

The details

The NAACP, acting on behalf of the largely African American local community living near xAI's existing Colossus I facility in Memphis, said the company began illegally installing and operating 27 gas turbines at a site in Southaven, Mississippi to power Colossus II without properly obtaining the necessary preconstruction or operating air permits required by the Clean Air Act. The civil rights group said the turbines have the potential to emit significant amounts of pollutants like nitrogen oxides, fine particulate matter, and formaldehyde.

  • The public hearing is scheduled for Tuesday, February 17, 2026.
  • In 2024, the Southern Environmental Law Center, representing the NAACP, filed an intent to sue xAI for installing 35 non-permitted turbines at its Colossus 1 site. In response, xAI removed 20 turbines and obtained permits for the remaining 15.

The players

xAI

Elon Musk's artificial intelligence company that is rapidly building its Colossus supercomputer, which is being used to train the company's Grok AI chatbot. xAI is seeking to expand its data center operations in the Memphis area.

NAACP

The National Association for the Advancement of Colored People, a prominent civil rights organization that is threatening to sue xAI over alleged Clean Air Act violations related to the company's data center expansion plans.

Southern Environmental Law Center

The law firm representing the NAACP in its lawsuit threat against xAI.

Mississippi Department of Environmental Quality

The state regulatory agency hosting the public hearing on xAI's data center expansion plans.

Got photos? Submit your photos here. ›

What’s next

The Mississippi Department of Environmental Quality hearing is the only chance for the public to weigh in on the project. xAI has submitted permit applications for 41 permanent turbines at the site and will run a number of temporary turbines while the applications are being reviewed.

The takeaway

This case highlights the ongoing tensions between the tech industry's need for energy-intensive infrastructure and the environmental and public health concerns of local communities, especially those with large minority populations. It underscores the importance of rigorous environmental reviews and permitting processes to ensure tech expansion does not come at the expense of air quality and community health.