Mississippi Permit for xAI Power Plant Draws Legal Challenge

Elon Musk’s xAI, now part of SpaceX, is confronting a legal challenge in Mississippi. Environmental organizations have petitioned the state to revoke a permit granted last month for a substantial methane gas power plant in Southaven.

The NAACP, Young, Gifted & Green, and the Safe and Sound Coalition argue the facility will exacerbate local ozone issues and increase pollutants like nitrogen dioxide, posing health risks to nearby residents. The permit, issued by the Mississippi Department of Environmental Quality on March 10, allows xAI to install 41 natural gas turbines in DeSoto County. The plant is intended to supply electricity to xAI's expanding data center operations in the Memphis area, a strategic hub for Musk's push into competitive AI development.

Legal representatives from the Southern Environmental Law Center contend the permit process was flawed. They allege pollution estimates were inaccurate, the company faced no mandate to use the cleanest available turbines or buy environmental offsets, and community input was sidelined. Internal government communications suggest regulators expedited the review under pressure from xAI.

The authorization is a federal Prevention of Significant Deterioration permit, which usually involves lengthy review. The state environmental agency confirmed receipt of the hearing request and noted xAI may participate in the proceedings. The company did not provide comment on the legal action.

Source: CNBC