Salter: AI-driven global data center boom, including in Mississippi, draws critics and litigation
Mississippi is experiencing a significant data center boom driven by AI demand, with several major projects underway from companies like Amazon, Compass, xAI, and AVAIO Digital. This growth, while celebrated by state officials for economic development, faces increasing opposition and recent legal challenges. Environmental groups, on behalf of the NAACP, have filed a notice of intent to sue xAI and its subsidiary MZX Tech LLC over alleged Clean Air Act violations related to natural gas-burning turbines for its Mississippi project.
Mississippi is experiencing an AI-driven data center boom, attracting significant economic development and investment, according to an opinion column by Sid Salter in The Greenwood Commonwealth. The state is home to several planned data center projects, including Amazon's sites in Madison and Warren County, Compass Datacenters in Meridian/Lauderdale County, AVAIO Digital Partners' Taurus Data Center Hub in Rankin County, and Elon Musk's xAI Colossus 3 in DeSoto County.
Despite the economic benefits lauded by Mississippi Governor Tate Reeves, the Mississippi Development Authority, and the state legislature, these developments have drawn criticism. Initial opposition came from Kelley Williams, chairman of the Bigger Pie Forum, a group advocating for market-driven economic growth.
More recently, the Southern Environmental Law Center and Earthjustice, representing the NAACP, sent a legal notice of intent to sue xAI and its subsidiary MZX Tech LLC. The lawsuit alleges that the company's use of natural gas-burning turbines for its Mississippi data center requires a federal permit and violates the Clean Air Act. This legal action follows a similar, though ultimately unresolved, notice of intent to sue filed in June 2025 regarding xAI's Memphis data center projects, which became compliant after obtaining permits. Across the U.S., local opposition to data centers is noted, with a group tracking $62 billion in projects delayed or blocked by protests.