Elon Musk's xAI Wins Permit to Build Power Plant in Mississippi Despite Pollution Concerns

Regulators authorize xAI to construct 41-turbine natural gas plant to power nearby data centers, drawing criticism from civil rights and environmental groups.

Mar. 10, 2026 at 7:04pm

Got story updates? Submit your updates here. ›

The Mississippi Department of Environmental Quality has approved a permit for Elon Musk's artificial intelligence company xAI to build a 41-turbine natural gas power plant in Southaven, Mississippi to supply electricity for its nearby data centers. The decision has faced backlash from the NAACP and other civil rights and environmental organizations who argue the plant will increase pollution and harm local communities.

Why it matters

The approval of xAI's power plant permit highlights the tension between economic development and environmental concerns, as the company seeks to build out its AI infrastructure to support a potential SpaceX IPO, while local groups raise alarm over the plant's potential pollution impacts on surrounding neighborhoods.

The details

xAI, which was recently merged into Elon Musk's SpaceX, has been using temporary turbines at the Southaven site for months without a federal permit. The company plans to construct the new 41-turbine natural gas plant, as well as an additional large data center dubbed "Macrohardrr", to power its AI operations. Critics argue xAI understated the plant's pollution levels in its permit application and failed to properly engage the community.

  • The Mississippi Department of Environmental Quality held a board meeting on March 10, 2026 to vote on issuing the permit to xAI.
  • xAI has been using temporary turbines at the Southaven site for months without a federal permit.

The players

xAI

An artificial intelligence company owned by Elon Musk's SpaceX that is building a power plant and data centers in Southaven, Mississippi.

Mississippi Department of Environmental Quality (MDEQ)

The state regulatory agency that approved the permit for xAI to build the power plant in Southaven.

NAACP

A civil rights organization that has criticized the MDEQ's decision and plans to sue xAI over its operations.

Southern Environmental Law Center (SELC)

A legal advocacy group representing the NAACP in challenging xAI's power plant permit.

Jason Haley

A Southaven resident who has been part of a local coalition called Safe & Sound pushing for xAI to control noise levels from its operations.

Got photos? Submit your photos here. ›

What they’re saying

“We are outraged that, despite the community's clear demand to move the Election Day hearing, MDEQ chose to bulldoze through a decision that silenced the very residents most harmed by it.”

— Abre' Conner, Director of environmental and climate justice at NAACP (NAACP and Southern Environmental Law Center statement)

“The permit issued by MDEQ has a number of serious flaws that violate federal law, run afoul of the agency's own policies, and put families in North Mississippi and Memphis at risk.”

— NAACP and Southern Environmental Law Center (NAACP and Southern Environmental Law Center statement)

“Mississippi state regulators appear to be more interested in fast-tracking xAI's personal power plant than conducting a thorough review of its impacts and having meaningful engagement with the families that will be forced to live with this dirty facility—and its pollution—in their communities.”

— Patrick Anderson, Senior attorney at Southern Environmental Law Center (NAACP and Southern Environmental Law Center statement)

What’s next

The NAACP, represented by the Southern Environmental Law Center, plans to sue xAI over the company's prior and ongoing use of natural gas-burning turbines without federal permits.

The takeaway

This decision highlights the ongoing tensions between economic development and environmental protection, as regulators balance the interests of a high-profile tech company like xAI against the concerns of local communities over potential pollution impacts. The legal battle over xAI's power plant is likely to continue, with civil rights and environmental groups determined to hold the company accountable.