Artificial intelligence consumes enormous amounts of energy. Elon Musk and his xAI know this all too well. And so he simply decided to generate his own electricity—even if the city of Southaven in Mississippi has to bear the environmental consequences and health risks.
The power plant's strategic location
The entire story unfolds in two locations just a few minutes' drive apart across the state line. In Memphis, Tennessee, there are enormous xAI data centers. They are Colossus 1 and Colossus 2, huge buildings full of servers and chips that power the Grok AI chatbot.
But these data centers consume so much electricity that the public grid simply cannot meet their needs. Therefore, xAI decided to build its own power source just across the state line, in neighboring Southaven, Mississippi. And this is where the problem begins.
The turbines arrived without warning or permits
According to Southaven residents interviewed by NBC News, the first 18 natural gas turbines appeared in the town virtually overnight and began operating around the clock without warning. Residents of nearby areas were thus subjected daily to an unpleasant noise resembling an airport runway.
It should be noted that the company began operating these turbines without a single federal permit. It argued that this was merely a temporary solution that did not require a permit. And this is not the first time. The company used exactly the same approach in 2024 in Memphis. Perhaps that is why it has now tried a different state.
From a temporary solution to a permanent power plant
In December, another 9 turbines were added to the existing 18. At that point, xAI announced that it wanted to replace this temporary solution with something permanent. It applied for permission to install 41 permanent methane turbines in Southaven.
However, environmental experts pointed not only to the health and environmental risks, but also to the fact that it would be one of the largest fossil-fuel power plants in the entire state of Mississippi. Yet only local residents seem willing to acknowledge this, not the higher authorities.
A data center to accompany the power plant
Although the construction of a new power plant might seem like the worst possible nightmare, Elon Musk went even further. In the building of a former logistics warehouse in the town of Southaven, he plans to build a new, third data center called Macrohardrr. The name of this data center is intended as a jab at rival company Microsoft.
Polluted air, noise, and a parody of a sound barrier
Local residents opposed the entire project, and their resistance was more than just a formal protest. Experts from various fields also became involved. For example, research by scientists from the University of Tennessee showed that the operation of the turbines contributes to deteriorating air quality throughout the area. This is also confirmed by the American Lung Association, which gives counties with data centers and turbines an “F” rating for air pollution.
According to The Guardian, environmental organizations also warn that the generators emit dangerous chemicals such as formaldehyde and nitrogen oxides. These may be responsible not only for respiratory illnesses, but also for heart attacks and certain types of cancer.
The high noise level is also highly problematic. And although xAI had a sound barrier installed for 7 million dollars, local residents are far from impressed. According to them, its effectiveness and quality are inadequate.
Regulators approve, residents rage
Hundreds of residents gathered in Southaven for a public hearing on February 17. Not a single person present spoke in support of the project. On March 10, 2026, however, Mississippi state regulators ultimately granted a permit for 41 permanent turbines. Yet the key vote was held on the day of the primary election, several hundred kilometers from Southaven. This made it difficult for the most affected residents to attend.
Despite the decision having already been made, local residents do not intend to give up without a fight. The Southern Environmental Law Center (SELC) plans to file a lawsuit over violations of the federal Clean Air Act.
Patrick Anderson, a senior attorney at SELC, also told CNBC that regulators are prioritizing Musk's ambitions over local residents' concerns, and he criticized the approval of the power plant before its impact had been thoroughly assessed. The battle over whose interests should take priority therefore appears to be only just beginning.
