Musk's xAI wants to build a power plant in Mississippi. Regulators plan key meeting on Election Day

Elon Musk's artificial intelligence venture, xAI, is seeking to construct a large natural-gas power facility in Southaven, Mississippi. In response, the state's environmental agency has arranged a crucial board meeting for Election Day in 2026 to determine whether to issue the necessary permits for the project. Civil rights groups, including the NAACP, have expressed their concerns, arguing that the timing of the meeting could hinder voter participation. They also highlighted that the meeting's location in Jackson, nearly 200 miles from Southaven, would make it difficult for residents affected by the plant to attend. In a letter dated March 8, which was released to the public on Monday, the NAACP noted, "This situation presents not only a conflict of civic duty but also an undue financial strain on Black residents and those in low-income communities nearby." The organization requested that the meeting be postponed and relocated closer to the proposed site. However, the Mississippi Department of Environmental Quality (MDEQ) rejected this request, stating that their permit board has consistently met on the second Tuesday of each month for decades, emphasizing that they assess matters on a statewide level. This meeting comes shortly after Musk completed a merger between xAI and SpaceX, valuing the newly formed entity at $1.25 trillion. Since establishing xAI in 2023, Musk has aimed to position the company as a competitor to OpenAI in the rapidly expanding generative AI sector. The operation of AI models requires significant computational power, contributing to rising electricity costs, which have been partly attributed to the energy consumption of new data centers. Recently, tech executives, including representatives from xAI, committed to non-binding agreements to independently source power for their facilities during a meeting with the White House. Currently, xAI has been using its Colossus 1 and Colossus 2 data centers in Memphis, Tennessee, just across the state line. In Southaven, xAI plans to invest in the new power plant as well as a large data center known as Macrohardrr. Following the MDEQ's decision, the NAACP accused the agency of attempting to expedite xAI’s data center establishment without considering the local community's needs. In their statement, they remarked, "Their actions speak volumes. They're trying to sneak xAI's data center into the community’s backyard without concern for the residents." Earlier this year, the NAACP notified xAI of their intent to sue over alleged violations of the Clean Air Act. Residents have complained of constant noise pollution and raised alarms about air quality and public health risks associated with xAI's use of temporary natural gas turbines. Research from the University of Tennessee has suggested that xAI's operations have exacerbated air pollution in the Greater Memphis area. During a public hearing in February, around 200 locals voiced their opposition to the rapid development of xAI's data and power infrastructure, calling for greater transparency and community involvement. Local parents and officials expressed their worries about the long-term impacts on health and quality of life, with concerns only intensifying as developments continue. An investigation revealed that xAI has been operating multiple "temporary" turbines in Southaven, similar to previous operations in Memphis. While the company claims these turbines do not require federal permits, environmental compliance experts have raised questions about this assertion. The community's resistance and regulatory challenges are prompting Musk and other tech leaders to consider the potential of establishing data centers in space as a long-term solution.