Musk's xAI Wins Approval to Build Mississippi Power Plant for Data Center
Elon Musk's xAI is continuing to expand energy-intensive computing capacity in the greater Memphis area to train generative AI models including Grok. In January 2026, the company announced an investment of more than $20 billion to build its “MACROHARDRR” data center in Southaven, Mississippi. Total computing capacity is expected to approach 2 GW upon completion, putting its power supply and environmental burden under scrutiny.
The Mississippi Environmental Quality Permit Board unanimously approved a construction permit for xAI affiliate MZX Tech on March 10, 2026, allowing it to install 41 permanent methane-gas turbines to replace 27 unpermitted units at the site. The NAACP and other groups have raised concerns about air pollution and pressure on water supplies. On June 15, the U.S. Justice Department sought to intervene and dismiss the related lawsuit, arguing that the facility was important to the economy and military AI.
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The history behind this eventSpaceX to Remove xAI’s Unpermitted Memphis Turbines by July 2027
Elon Musk’s xAI built a major data center in Memphis, Tennessee, to provide computing capacity for artificial-intelligence model training. Its reliance on natural-gas turbines operating without air permits has raised concerns over local air quality and environmental justice. The facility could emit more than 2,000 tons of smog-forming nitrogen oxides annually, making its power supply a flashpoint for regulators, residents and civil-rights advocates.
SpaceX said the 69 unpermitted natural-gas turbines supplying xAI’s Memphis data center will be phased out as permanent generating capacity comes online, but the final units are not expected to be removed until July 2027. The site is set to transition to a permanent 1.2-gigawatt power plant. The NAACP and the Southern Environmental Law Center have sued xAI over the operation of the turbines without required permits.
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