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Mississippi Holds Hearing on XAI Data Center Amid Environmental Lawsuit Threat
WASHINGTON, Feb 17 (Reuters) - Mississippi regulators will host a public hearing on Tuesday over plans by Elon Musk's xAI to build a gas-fired power plant to power its Colossus II data center, as the company faces a lawsuit threat by the NAACP, accusing it of violating federal law by installing
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Mississippi to hold hearing on xAI data center
On Tuesday, Mississippi regulators will host a public hearing over plans by xAI (X.AI) to develop a gas-fired power plant to power its Colossus II data center, Reuters reported. The AI startup faces a lawsuit threat by the National Association Environmental lawsuits by the NAACP and SELC over
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Mississippi regulators are hosting a public hearing on Elon Musk's xAI plans to build a gas-fired power plant for its Colossus II data center. The NAACP has threatened legal action, accusing the company of violating the Clean Air Act by installing and operating 27 gas turbines without proper air permits, potentially harming largely African American communities near Memphis.
Mississippi regulators are hosting a public hearing in Mississippi on Tuesday to examine plans by Elon Musk's xAI to construct a gas-fired power plant for its Colossus II data center
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. The Mississippi Department of Environmental Quality hearing represents the only opportunity for public input on what the Southern Environmental Law Center describes as the largest new source of pollution in the Memphis area in years1
. According to the DEQ, xAI has submitted air pollution permits applications for 41 permanent turbines at the site and will run several temporary turbines while the applications undergo review1
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Source: Seeking Alpha
The civil rights group has issued an NAACP lawsuit threat against xAI, alleging the company began illegally installing and then operating 27 gas turbines at a site in Southaven, Mississippi to power Colossus II, which sits across the state line in Memphis
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. The NAACP, acting on behalf of the largely African American local community living near the existing Colossus I facility in Memphis, Tennessee, accuses xAI of violating the Clean Air Act by failing to obtain necessary preconstruction permits or operating permits1
. Under the Clean Air Act, plaintiffs must signal their intent to sue 60 days in advance1
.The NAACP warned in its letter that pollution from these turbines is worsening and will continue to worsen the already poor air quality in Southaven, Mississippi and the Memphis metropolitan area
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. The gas turbines have the potential to emit significant amounts of smog-forming nitrogen oxides (NOx), exceeding the Clean Air Act's "major source" threshold, along with other pollutants including fine particulate matter and carcinogenic formaldehyde1
. These environmental concerns particularly impact largely African American local communities in the region1
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xAI has been rapidly building its Colossus supercomputer, which trains the company's Grok AI chatbot in Memphis and is expanding to Southaven
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. The xAI data center is currently in phase 2 and seeks to begin a third phase soon1
. This isn't the first time xAI has faced legal challenges over unpermitted turbines. After the Southern Environmental Law Center filed an intent to sue xAI in 2024 for installing 35 non-permitted turbines at its Colossus I site, the company removed 20 turbines and obtained permits for the remaining 151
.Environmental lawsuits by the NAACP and SELC over unpermitted gas turbine installation could lead to project delays, mandatory removal of turbines, fines, or stricter regulations for the Colossus II data center
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. Local community and NAACP opposition, citing health and environmental harms, could increase regulatory scrutiny and create obstacles that may delay or alter xAI's expansion plans2
. The company faces challenges obtaining air pollution permits under the Clean Air Act, with heightened scrutiny from state regulators due to lawsuits citing possible violations and local environmental concerns2
. xAI was not immediately available for comment on the lawsuit threat1
.Summarized by
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10 Mar 2026•Policy and Regulation

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