Musk’s XAI gets permission for makeshift data center power plant despite backlash | Technology


Elon Musk’s artificial intelligence company xAI won approval Tuesday to run 41 methane gas turbines at its “Colossus 2” data center in northern Mississippi. That’s almost double the amount it has been trading.

The turbines will help power xAI’s massive data centers, which house the company’s “AI supercomputers,” or giant sets of advanced chips, which in turn power the controversial Grok AI tool, the company’s most recognizable product.

The decision, made by Mississippi’s department of environmental quality, MDEQ, comes amid widespread public opposition to the data center, which demands huge amounts of electricity. Community members and environmental advocates say the gas generator cluster will contribute to dangerous air pollution in Southaven, Mississippi.

“We are outraged,” said Abre’ Conner, director of environmental and climate justice for the NAACP. “The MDEQ chose to bulldoze it through a decision that silenced the residents most harmed by it.”

Since xAI turned on Colossus 2 last year, introducing unauthorized turbines, residents have complained of noise and air quality problems. At a public hearing held by MDEQ in Southaven last month, hundreds of people packed the room to express their concerns about xAI’s impact on the community. According to NBC, no one spoke in favor of MDEQ granting the permit.

“The scale, speed and intensity of this expansion is unlike anything this area has ever absorbed,” Southaven resident Nathan Reed said, according to NBC. “This was not a thoughtful, gradual development. It was an industrial boom imposed on our residential community.”

The NAACP, which has filed a lawsuit against xAI over the Colossus 2 contamination, says the MDEQ rushed a decision and dismissed community concerns. “It is shocking that a state agency and board would refuse to address an unnecessary civic crisis, prioritizing expediency over justice,” Conner said.

Amid a similar community outcry, xAI set up its first data center in Memphis in 2024. It’s a massive facility called “Colossus” that’s about the size of 13 football fields. Tennessee regulators granted a permit for 15 gas generators there last July. Additionally, the company is building a third data center in Southaven, called “Macrohardrr.”

The gas generators used by xAI emit fine particles containing dangerous chemicals such as formaldehyde and nitrogen oxide, according to environmental groups. These pollutants are linked to an increase in diseases, such as asthma, respiratory illnesses, heart attacks, and certain cancers. The areas where xAI data centers are located already struggle with pollution, and the American Lung Association gave an “F” rating to DeSoto and Shelby counties.

The Southern Environmental Law Center says xAI’s 41 turbines in Southaven will likely make Colossus 2 one of the largest fossil fuel power plants in Mississippi and one of the area’s biggest polluters.

“Mississippi state regulators appear more interested in fast-tracking xAI’s personal power plant than conducting a thorough review of its impacts and having meaningful engagement with the families who will be forced to live with this dirty facility,” said Patrick Anderson, senior attorney at the Southern Environmental Law Center.

The MDEQ and xAI did not immediately respond to requests for comment.

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