Elon Musk’s xAI has received formal approval from Mississippi regulators to operate a 41-turbine natural gas power plant at its Southaven site. The permit, issued on Tuesday, allows the company to significantly increase the electricity supply for its Colossus 2 datacenter. This facility is a key component of Musk’s strategy to build a globally dominant AI training cluster.
The 41 turbines will replace a set of 27 unpermitted engines that had been operating at the site since last year. These turbines are necessary to provide the massive electrical load required by xAI’s supercomputing hardware, which is used for the development of Grok. By generating power on-site, xAI avoids the long lead times associated with traditional utility grid connections.
Community members have expressed “outrage” over the decision, claiming that the state prioritized corporate profit over public health. Hundreds of residents attended a recent public hearing, citing noise pollution and a decline in air quality as their primary concerns. The NAACP has accused the MDEQ of “silencing” the community by fast-tracking the permitting process.
The environmental impact of the turbines is a major sticking point, as they emit hazardous chemicals like formaldehyde. Both DeSoto and Shelby counties have already received failing grades for air quality, and activists fear the new plant will worsen existing conditions. The Southern Environmental Law Center has vowed to continue its legal challenge against the facility.
As xAI continues its $20 billion expansion into the “Digital Delta,” the Colossus 2 site remains a flashpoint for environmental controversy. The company is currently building a third facility, “Macrohardrr,” which will further increase its computing footprint in the region. The outcome of the current NAACP lawsuit will have significant implications for how AI infrastructure is regulated in the future.