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.