State rejects appeal over SpaceXAI’s air permit for Southaven facility

SOUTHAVEN, Miss. (WMC) - The Mississippi Department of Environmental Quality (MDEQ) has rejected an appeal over what environmental activists are calling a “flawed” air permit granted to SpaceXAI for its data center power plant in Southaven.

The air permit, granted in March, allows SpaceXAI to use 41 methane gas turbines to help power its nearby Colossus 2 data center just across state lines in Memphis.

Several environmental activist groups appealed MDEQ’s decision a month later, citing harmful emissions from the turbines and community backlash.

“State regulators rubberstamped the permit despite clear flaws that downplay the air pollution impacts of the power plant, violate the law, and threaten the health of families who live in North Mississippi and South Memphis.”

Southern Environmental Law Center

MDEQ’s Permit Board heard oral arguments from experts representing all parties during a two-day evidentiary hearing in Jackson this week.

MDEQ decided to dismiss the appeal, allowing SpaceXAI to continue operating gas turbines in Southaven.

The board cited “insufficient evidence” to support the environmental groups’ claims.

“Following a two-day evidentiary hearing, the Mississippi Environmental Quality Permit Board voted to deny the petitioners’ appeal and request for relief, finding that insufficient evidence had been presented to support their claims. The decision upholds the previously issued air permit for MZX Tech, LLC, in Southaven. The Permit Board’s ruling speaks for itself.”

MDEQ Communications

“MDEQ had an opportunity to fix the clear problems with the air permit it issued to xAI for its massive data center power plant, but the Permit Board chose to double down on a deeply flawed permit instead,” Patrick Anderson, a senior attorney at the Southern Environmental Law Center, said. “xAI’s power plant will be one of the largest polluters in the region, with the ability to pump staggering amounts of harmful air pollution into nearby communities. This permit fails to protect families in North Mississippi and South Memphis from the harmful impacts of this dirty facility.”

The National Association for the Advancement of Colored People (NAACP) has also sued MDEQ, alleging that SpaceXAI violated the Clean Air Act by running the turbines before their permit was approved.

The DOJ sought to dismiss the suit, but a federal court dismissed the appeal in late October.

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