March 9, 2026, 5:04 a.m. CT
- Elon Musk’s xAI is seeking a permit from Mississippi regulators to operate 41 gas turbines in Southaven.
- The turbines are intended to power the company’s nearby data centers in Mississippi and Memphis.
- The permit application has faced significant public criticism over environmental and noise pollution concerns.
- The Mississippi Department of Environmental Quality Permit Board is scheduled to make a final decision on March 10.
As Elon Musk’s artificial intelligence company continues expanding in Memphis and North Mississippi, the company awaits a decision on a permit from the Mississippi Department of Environmental Quality (MDEQ).
On Feb. 17, the MDEQ held a public hearing regarding an operations permit for 41 turbines at xAI’s 2875 Stanton Road power plant in Southaven. MZX Tech LLC, an affiliate of xAI, applied for the application. Arkansas-based Trinity Consultants curated the application on behalf of MZX Tech.
MZX Tech purchased the former Duke Energy site and the surrounding 114 acres on Stanton Road in July 2025. In December, the company purchased an adjacent 104-acre site; the property acquisition included an 810,258-square-foot warehouse at 2400 Stateline Road. In January 2026, xAI and Mississippi elected officials formally announced plans for a third data center at the Stateline Road warehouse called Macrohardrr.
MZX Tech’s application for the 41 turbines is for powering its active data center, Colossus 2, at 5420 Tulane Road in Memphis’ Whitehaven neighborhood. The Colossus 2 data center is about 200 yards away from the Stateline Road warehouse. Turbines used at the site are expected to power Colossus 2, and the Macrohardrr data center once it is online.
When will MDEQ decide on the permit?
The MDEQ Permit Board is scheduled to meet on March 10 in Jackson, Mississippi. The board will convey and make a final decision on the operations permit.
The Permit Board does have the authority to approve or deny the permit or modify it as neccessary.
The meeting is being held earlier than expected. Following the public hearing on Feb. 17, MDEQ Air Division Chief Jaricus Whitlock said all public comments were to be reviewed and did not expect the Permit Board to meet by early March.
What happens if the permit is approved? If denied?
The permit has faced significant scrutiny and public criticism. During the Feb. 17 public hearing, more than 300 people attended, and all speakers criticized the permit. Neither members of the MDEQ Permit Board nor xAI representatives were in attendance during the Feb. 17 hearing.
If approved, xAI will be able to operate 41 turbines at the Stanton Road site to power its nearby data centers in Memphis and Southaven. The permit application does not include 27 turbines that are active at the site. In August, MDEQ allowed the use of 16 unpermitted turbines at the Stanton Road site. That figure has increased to 27 since December 2025, according to email correspondence between Trinity Consultants and MDEQ representatives.
If denied, the turbines could not be used legally; however, xAI and its affiliates could appeal any such decision from the MDEQ Permit Board. The legality would be based on new U.S. Environmental Protection Agency regulations.
In January, the EPA updated its Clean Air Act, requiring permits for all gas and combustion turbines, including temporary ones.
Officials at xAI did not comment on the construction permit or building use in Southaven.
Why use turbines?
Essentially, the turbines operate as a microgrid for xAI. They provide power to the company’s data center without connecting directly to the main grid.
Gas turbines can provide significantly higher yields of power capacity than other readily available power sources. The power source is also easier to access and build than other microgrids used to power hyperscale data centers.
xAI has operated gas turbines and battery storage microgrids in the Memphis region to power its Colossus and Colossus 2 data centers. The company is also building a solar panel farm near its Colossus data center at 3231 Paul R. Lowry Road.
Are there environmental concerns?
Despite the higher power generation, gas turbines present air and noise pollution concerns.
According to the permit application, the 41 turbines would produce up to 21.54 tons of hazardous air pollutants (HAP) annually via uncontrolled emissions. With controlled emissions, that figure would be reduced to 19.07 tons of HAP annually. Additionally, the turbines would emit more than 6.4 million tons of greenhouse gases.
EPA guidelines designate a major source of HAP as 25 tons via multiple sources. Per the permit application, the turbines would operate 24/7 and include at least one major source that exceeds major source thresholds, including greenhouse gas emissions and nitrogen oxides.
Additionally, Southaven residents have reported noise complaints at the xAI facility due to ongoing construction and turbine use.
How much property does xAI have in Southaven?
As previously mentioned, xAI owns more than 200 acres in Southaven, including the warehouse at 2400 Stateline Road. That property is owned by MZX Tech LLC, an xAI affiliate.
In February 2025, xAI affiliate CTC Property LLC purchased 186.13 acres along Tulane Road in Shelby County. In July 2025, those properties, including 5420 Tulane Road, were transferred to MZX Tech LLC, according to the Shelby County Register of Deeds.
The Tulane Road properties include the Colossus 2 data center site. Additionally, on March 3, xAI staff filed a new construction permit with the Memphis and Shelby County Division of Planning and Development for a 312,356-square-foot building at 5414 Tulane Road. The building has an estimated construction cost of $659.3 million, according to the permit.
The construction permit does not provide specifics for the building’s intended use. The power supplied via xAI’s Stanton Road site can connect to the Tulane Road properties.
Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679
