
The data center backlash comes for SpaceXAI’s Colossus
SpaceXAI is facing backlash over a power plant in Southaven, Mississippi, that uses dozens of temporary gas turbines to power its Colossus data centers in Memphis, Tennessee. Residents are experiencing noise and air pollution, leading to multiple lawsuits and community opposition, while the Department of Justice has intervened citing national security concerns. The issue highlights broader challenges with data center energy demands and local environmental impacts.
SpaceXAI's expansion of its Colossus data centers, including Colossus 2 in Memphis, Tennessee, is being powered by dozens of temporary gas turbines located at a power plant in Southaven, Mississippi. Local residents in the Colonial Hills neighborhood of Southaven, including Taylor Logsdon and Krystal Polk, are experiencing significant noise and air pollution, with a March report by an acoustics firm indicating noise levels could be four to 16 times typical suburban background noise.
The NAACP filed a lawsuit in April, arguing the operation constitutes an unpermitted power plant under the Clean Air Act, a claim supported by state records showing the fleet grew to 69 turbines. Residents also filed a class-action lawsuit alleging lost sleep and falling property values. The Department of Justice, citing national security and AI innovation, intervened to ask the court to dismiss the NAACP suit, noting the Pentagon awarded xAI a contract for its Grok chatbot. Despite public opposition, the Mississippi Department of Environmental Quality (MDEQ) initially allowed the temporary turbines and later permitted 41 permanent turbines, which drew widespread public resistance at a hearing.
Memphis, Tennessee, has also experienced similar issues with Colossus 1, including a temporary power setup and an unfulfilled promise for a recycled-water facility. In response to community pressure, the Memphis City Council gave initial approval to a temporary pause on new data centers and adopted a community-benefits ordinance. Conversely, a Mississippi commission and MDEQ signed an agreement with xAI affiliate MZX Tech, allowing 13 temporary turbines to continue operation past their initial 12-month deadline due to construction delays on the permanent plant.
The article highlights a broader trend of AI data centers straining existing power grids, prompting companies like SpaceXAI to construct onsite power generation. Local officials in Southaven, including Mayor Darren Musselwhite, have been criticized for their unresponsiveness, while Mississippi Governor Tate Reeves has emphasized the economic benefits of SpaceXAI's $20 billion investment in the state. The situation underscores a tension between rapid technological development, economic incentives, and environmental and community health concerns.