
Musk faces another lawsuit over data center power
News ClipE&E News by POLITICO·Southaven, DeSoto County, MS·2/17/2026
Elon Musk's AI company xAI is being sued by environmental groups for allegedly using unpermitted gas turbines to power a data center in Southaven, Mississippi. This is the second time xAI has been accused of violating the Clean Air Act to power a data center with unapproved generators.
electricityenvironmental
xAI
Environmental groups are planning to sue Elon Musk's artificial intelligence company, xAI, for powering a data center in Southaven, Mississippi with unpermitted gas turbines. xAI has argued that the gas-powered generators don't need permits unless in use for over a year, but the EPA has clarified that permits are required. This is the second time xAI has been accused of violating the Clean Air Act to power a data center, with a previous facility in Tennessee also using over 30 unpermitted gas turbines for more than a year before receiving a permit.