Elon Musk’s xAI is seeking permission to build a large natural gas-burning power plant in Southaven, Mississippi, to support its data centers, with a crucial regulatory meeting scheduled for Election Day 2026. The NAACP has criticized the timing of the meeting, arguing it coincides with the state’s primary elections, thus hindering community engagement, as it takes place nearly 200 miles away from the proposed site. This plan has faced significant opposition from local residents who report ongoing noise pollution and air quality concerns linked to xAI’s current operations, including the use of unpermitted gas turbines. The company, recently merged with SpaceX, is investing heavily in the region, but critics argue that the lack of transparency and community involvement could lead to further environmental issues.
xAI: xAI develops advanced AI models including the Grok chatbot as a competitor in the generative AI space. In early February 2026, it merged with SpaceX to form a combined entity advancing AI-space synergies.39 The company is seeking permits from Mississippi regulators to build a natural gas power plant in Southaven to power its data centers, facing opposition from residents and groups over noise and pollution.15
NAACP: The NAACP advocates for civil rights and environmental justice, particularly in communities of color. It recently demanded Mississippi regulators reschedule xAI’s permit hearing and deny approval for gas turbines due to election conflicts and health impacts.16 The organization filed a notice of intent to sue xAI over unpermitted turbine operations violating clean air rules.
SpaceX: SpaceX builds reusable rockets and pursues space infrastructure projects. It acquired xAI in February 2026, integrating the AI firm as a subsidiary to combine expertise in space and artificial intelligence.47 Through xAI, SpaceX supports data center expansions in Mississippi requiring dedicated power generation.
Elon Musk: Elon Musk leads SpaceX as CEO and founded xAI to challenge dominant AI players. He orchestrated the February 2026 merger of SpaceX and xAI to streamline operations and accelerate development.42 His companies’ push for AI infrastructure in Mississippi has sparked regulatory and community debates.
Mississippi Department of Environmental Quality: The MDEQ oversees environmental permits and regulations across Mississippi. It conducted a public hearing on xAI’s turbine permit in Southaven on February 17 and plans a decision at its standard monthly board meeting.25 The agency rejected calls to delay the Election Day session, upholding decades-old scheduling practices.
Merger: xAI became a SpaceX subsidiary after a merger in early February 2026, enabling integrated AI and space technology pursuits.
Regulatory Pushback: NAACP and allies threatened lawsuit against xAI for operating unpermitted turbines polluting Mississippi communities.
Community Opposition: Southaven residents describe constant noise from xAI’s temporary gas turbines as resembling jet engines day and night.
Source: CNBC
