SpaceXAI started Southaven data center construction without water permits, state alleges. Fines could exceed $6M
Mississippi regulators allege that SpaceXAI subsidiary MZX Tech LLC began construction of data center facilities in Southaven without required stormwater permits. The company could face penalties exceeding $6 million, while a federal judge separately ruled against SpaceXAI’s effort to dismiss a lawsuit challenging its operation of 69 natural-gas turbines without air permits.
The Mississippi Department of Environmental Quality said SpaceXAI subsidiary MZX Tech LLC began construction on roughly 30 acres of its Southaven data center campus before obtaining required construction stormwater permits. Inspectors found inadequate protections for stormwater infrastructure, inlets and dust at properties connected to the company’s planned $20 billion MACROHARDRR facility and related power plant. MDEQ issued two notices of violation, with penalties potentially reaching $25,000 per day and an estimated total of up to $6.1 million. SpaceXAI said it is cooperating with the agency and seeking a single agreement to resolve the violations.
The company also faces litigation over 69 temporary natural-gas turbines. U.S. District Court Judge Debra Brown rejected SpaceXAI’s motion to dismiss a lawsuit brought by the NAACP, finding that the turbines did not qualify for a federal Clean Air Act exemption for mobile generators. MDEQ spokesperson Jan Schaefer said the agency is reviewing the ruling but does not consider it binding because MDEQ is not a party and the case remains subject to appeal.