Elon Musk’s xAI faces fresh opposition after landing permit for Mississippi power plant

Elon Musk’s xAI faces fresh opposition after landing permit for Mississippi power plant

News ClipCNBC·Southaven, DeSoto County, MS·4/10/2026

Elon Musk's xAI, now owned by SpaceX, is facing a new legal challenge from environmental groups in Mississippi over a permit for a methane gas-burning power plant in Southaven. The groups argue the plant will worsen air quality and that the permit process was rushed, requesting the state revoke the permit granted by the Mississippi Department of Environmental Quality.

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xAISpaceX
Gov: Mississippi Department of Environmental Quality, Environmental Protection Agency
Elon Musk's xAI, recently acquired by SpaceX, is facing significant opposition in Mississippi over its plans to construct a large methane gas-burning power plant in Southaven, DeSoto County. Environmental groups, including the NAACP, Young, Gifted & Green, and the Safe and Sound Coalition, have filed a petition urging the Mississippi Department of Environmental Quality (MDEQ) to revoke a permit granted to xAI on March 10. The groups, represented by the Southern Environmental Law Center, contend that the power plant will exacerbate the region's ozone problem and significantly increase pollutants like nitrogen dioxide and fine particulate matter, posing health risks to local residents. They allege that xAI, through its subsidiary MZX Tech LLC, and the MDEQ used inaccurate pollution estimates, failed to mandate the cleanest available turbines, and did not require environmental offsets. Furthermore, they claim local stakeholders were excluded from critical meetings and that the MDEQ rushed the permit process under pressure from xAI. The permit in question is a Prevention of Significant Deterioration (PSD) permit, which typically involves years of review by the EPA, state regulators, and the public. The MDEQ confirmed receipt of the groups' request for an evidentiary hearing, stating that xAI will have the opportunity to participate. The power plant is intended to power xAI's data centers, including a new facility dubbed "Macrohardrrr" in Southaven, alongside an existing "Colossus 2" data center in Memphis, Tennessee.