Musk’s xAI Plant Caught Running Unpermitted Gas Turbines

Thermal drone footage has added fuel to a growing controversy in Southaven, Mississippi, where Elon Musk’s artificial intelligence company xAI is accused of operating unpermitted gas turbines to power its expanding datacenter footprint, as reported by The Guardian.

An investigation by Floodlight newsroom used aerial thermal imaging (yep, the same that we write a lot about it, used mostly to find missing persons or pets) to confirm that more than a dozen turbines remain active at xAI’s Southaven facility, despite a January ruling from the Environmental Protection Agency reiterating that such equipment requires state permits under the Clean Air Act before operation.

The EPA warned that exempting these engines could leave them “subject to no emission standards at all.” Former EPA air enforcement chief Bruce Buckheit, after reviewing the footage, was blunt. Operators are supposed to obtain permission first, not ask forgiveness later.

Yet Mississippi regulators maintain that because the turbines sit on tractor trailers and are classified as portable or mobile units, they are exempt from state permitting requirements during what they describe as a temporary period. Federal guidance says otherwise.

A Regulatory Tug of War in Southaven

At the center of the dispute is a 114 acre site in Southaven, just across the Tennessee border from Memphis. The turbines help power Grok, xAI’s controversial chatbot, and support the company’s rapidly expanding Colossus datacenter cluster, which stretches from South Memphis into Mississippi.

The EPA clarified on January 15 that gas turbines like these require permits. Thermal imagery captured nearly two weeks later showed at least 15 turbines still running.

Under the Clean Air Act, the EPA oversees state compliance with federal standards and can take enforcement action if local authorities fail to act. However, when questioned about the xAi’s Southaven turbines, the agency referred permit oversight to state officials.

The Mississippi Department of Environmental Quality insists the turbines qualify as portable equipment and remain exempt under state law. According to the agency, while permits may not be required under their interpretation, applicable air quality standards still apply.

Residents say that explanation rings hollow.

Southaven homeowner Krystal Polk, who suffers from asthma, described a once quiet area now dominated by noise and emissions. She said she emptied out her longtime family home due to health concerns. Another resident, Shannon Samsa, helped gather over 1,000 petition signatures calling for the plant’s shutdown, citing its proximity to schools and neighborhoods.

Experts warn the pollutants emitted by gas turbines are linked to asthma, lung cancer, and heart disease. UC Riverside professor Shaolei Ren, who studies datacenter health impacts, noted that the risks of living near this type of power generation are well documented.

xAI’s Fossil Fuel Backbone

The Southaven dispute highlights a broader tension in the AI boom. While tech leaders frequently promote long term sustainability goals, many datacenters are leaning heavily on fossil fuels to meet explosive energy demand.

A recent Cleanview analysis found roughly 75 percent of new datacenter power capacity comes from natural gas. Public announcements often reference renewables, hydrogen, or nuclear power, but many of those projects are years away from deployment. In the meantime, gas turbines are filling the gap.

xAI has applied for a permit to operate 41 turbines at the Southaven site. According to its application, the facility could emit more than 6 million tons of greenhouse gases annually, along with over 1,300 tons of pollutants harmful to human health. If approved, it would rank among the largest fossil fuel power plants in Mississippi.

The company has also purchased property for a third datacenter in Southaven, which would make the Colossus complex one of the largest datacenter clusters in the world.

For residents like Samsa, the expansion feels less like technological progress and more like a looming industrial shadow.

DroneXL’s Take

Thermal drones are doing what they do best here, cutting through official statements and revealing heat signatures that do not lie. This story is not just about xAI or one Mississippi suburb. It is about how quickly AI infrastructure is scaling, and whether environmental oversight can keep pace.

When companies race to build the future, they often build power first and paperwork second. The question regulators now face is simple and sharp. Will xAI infrastructure operate under the same environmental rules as everyone else, or is this a new era where the biggest players write their own energy playbook?

Photo credit: Evan Simon/Floodlight