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SpaceXAI started Southaven data center construction without water permits, Mississippi alleges
State regulators say the company began work on a 30-acre Southaven site without required stormwater permits and could face up to $6.1 million in fines.
Environmental regulators released details this week on penalties against SpaceXAI for violating Mississippi water pollution laws by starting construction on its Southaven data center facilities without required permits.
During a July meeting, officials discovered MZX Tech LLC had already begun construction on approximately 30 acres, prompting the Mississippi Department of Environmental Quality to issue violation notices on August 10.
Inspectors at the 2400 Stateline Road property found "no steps have been taken to protect stormwater infrastructure at the site," which neighbors Horn Lake Creek, risking chemical runoff into local waters.
Separately, U.S. District Court Judge Debra Brown ruled last week that MDEQ misinterpreted Clean Air Act statutes when allowing SpaceXAI to run 69 natural gas turbines without a permit.
SpaceXAI informed investors two weeks ago that potential fines could reach $6.1 million, and the Elon Musk-owned company stated in an October filing it is cooperating with the agency to resolve matters through an agreed order.