SpaceXAI started Southaven data center construction without water permits, Mississippi alleges
Mississippi regulators allege SpaceXAI and its subsidiary, MZX Tech LLC, began construction of a major data center and power plant in Southaven without required stormwater permits. The company faces potential penalties of up to $6.1 million, while a federal judge also allowed the NAACP’s lawsuit challenging unpermitted operation of 69 natural-gas turbines to proceed.
Mississippi Department of Environmental Quality inspectors found that SpaceXAI subsidiary MZX Tech LLC had begun construction at properties in Southaven without required construction stormwater permits and without adequate controls to prevent pollution. The violations involved roughly 30 acres, including the planned MACROHARDERR data center site and a power plant location, and could result in daily penalties of up to $25,000, potentially totaling about $6.1 million. SpaceXAI said it is cooperating with MDEQ and negotiating a single agreed order.
The company is also facing litigation brought by the NAACP over 69 temporary natural-gas turbines used at the project. U.S. District Judge Debra Brown rejected SpaceXAI’s motion to dismiss after finding that MDEQ had misapplied a federal Clean Air Act exemption for mobile generators. MDEQ said the litigation remains subject to appeal and that the agency will review its policies after the case concludes.