Elon Musk’s xAI faces lawsuit over Mississippi power plant tied to AI data centers

Elon Musk’s AI company xAI is facing a legal challenge in the US state of Mississippi over plans to build a large gas-powered plant to support its AI operations. According to a CNBC report, several environmental groups, including NAACP, Young, Gifted & Green, and the Safe and Sound Coalition, have asked state authorities to cancel the permit given to the company. The groups say the plant could harm air quality and affect the health of people living nearby. The groups have filed a petition with the state, warning that the proposed power plant in Southaven could increase pollution levels. According to their lawyers, the project may worsen ozone levels in the area and raise emissions of harmful pollutants such as nitrogen dioxide and fine particles. They argue that this could lead to serious health risks for local residents.The permit, granted by the Mississippi Department of Environmental Quality in March, this year allows xAI to install 41 natural gas turbines in DeSoto County. These turbines are expected to power nearby data centers that support AI systems.xAI already operates a data center in Memphis, Tennessee, and is building another facility in Southaven as part of its expansion plans.The environmental groups have also raised concerns about how the permit was approved. They claim that pollution estimates used in the process were not accurate and that the company was not required to use the cleanest available technology. They further allege that local communities were not properly involved in discussions, and that the approval process may have been rushed.The permit falls under a federal rule known as Prevention of Significant Deterioration (PSD), which applies to large pollution sources like power plants and usually involves detailed review. The Mississippi regulator said it has received the request for a hearing on the matter and that xAI will be allowed to take part in the process.