Elon Musk’s artificial intelligence company, xAI, has installed 59 natural gas turbines to power its Colossus 2 data center project without federal clean air permits, according to records obtained by Reuters. The turbines are located primarily in Southaven, Mississippi, to provide off-grid electricity for the facility situated across the state border in Memphis, Tennessee. Regulatory communications indicate the number of turbines is more than double the 27 units previously acknowledged by the company.
The Mississippi Department of Environmental Quality (MDEQ) stated that these turbines do not require permits because they are classified as "portable/temporary" units intended to operate for less than one year. However, internal communications and environmental analysts suggest the potential emissions from the 59 units exceed the thresholds usually requiring federal oversight under the Clean Air Act. The U.S. Environmental Protection Agency (EPA) noted in early 2026 that temporary units exceeding specific emission limits generally must be permitted, though the agency is reportedly reviewing "regulatory flexibilities" for such hardware.
The project has faced legal challenges from the NAACP and the Southern Environmental Law Center, who filed a lawsuit in April to halt operations. The groups allege the turbines disproportionately impact predominantly Black neighborhoods where residents already face high rates of respiratory illness. xAI has not commented on the specific number of turbines or the allegations regarding public health impacts, while MDEQ maintains that the current setup complies with state interpretations of environmental regulations.