Southaven Residents Sue xAI, SpaceX Over 46 Unpermitted Turbines as Water Project Stalls
Updated
Updated · WIRED · Jun 11
Southaven Residents Sue xAI, SpaceX Over 46 Unpermitted Turbines as Water Project Stalls
3 articles · Updated · WIRED · Jun 11
Summary
A Southaven class action filed this week targets xAI and SpaceX over construction disruption at Colossus 2, where residents say unpermitted gas turbines are harming nearby communities.
At least 46 unpermitted turbines had been brought to the Mississippi site by mid-May, after xAI’s Memphis campus had already drawn scrutiny for running dozens of turbines through a Clean Air Act loophole.
Air-monitoring data from southwest Memphis showed PM2.5 levels consistently above EPA limits between November 2025 and March, and an analysis tied to a separate NAACP suit estimated up to $44 million a year in health damage.
Water use has become a second flashpoint: Colossus 1 could need more than 5 million gallons a day at peak cooling demand, while xAI halted construction of a promised water-reuse facility in mid-April.
The legal and environmental backlash is colliding with Musk’s expansion plans as SpaceX pursues an IPO above $1.75 trillion and has disclosed more than $2.8 billion in recent gas-turbine purchases.