Elon Musk’s xAI wants to build a power plant in Mississippi. Regulators plan a key meeting on Election Day


Elon Musk waves to the crowd during the 56th annual World Economic Forum (WEF) meeting in Davos, Switzerland, January 22, 2026.

Denis Balibouse | Reuters

With Elon Musk’s xAI planning to build a massive, natural-gas burning power plant in Southaven, Mississippi, the state’s environmental authority has scheduled a board meeting for Tuesday — Election Day for the 2026 primaries — to decide whether to grant the company key permits.

The NAACP and other civil rights and environmental advocates tried to get the meeting delayed, arguing that it was being rushed and would conflict with some residents’ efforts to vote. The groups also said that by holding the meeting in Jackson, nearly 200 miles away from Southaven, those directly affected by the plant are impeded from attending.

“This is not only a civic duty conundrum, but an unnecessary financial burden to Black residents and individuals who live in low-income and other communities near the facility,” the NAACP wrote in a letter to the Mississippi Department of Environmental Quality (MDEQ) that’s dated March 8, but was released publicly on Monday.

They asked that the hearing be rescheduled and moved to a site closer to the proposed facility.

The MDEQ denied the request on Monday, writing in a response to the NAACP that its permit board “regularly meets on the second Tuesday of each month, which has been the standard practice for decades,” and that the regulator, “considers matters on a statewide basis.” A copy of the letter was shared with CNBC.

The meeting is set to take place a little over a month after Musk merged xAI with SpaceX, his reusable rocket company, in a transaction that valued the combined entity at $1.25 trillion. Since starting xAI in 2023, Musk has tried to turn the AI company into an OpenAI competitor in the booming generative AI market.

Elon Musk’s xAI wants to build a power plant in Mississippi. Regulators plan a key meeting on Election Day

Training and running AI models requires hefty amounts of compute and power, and rising utility bills have been partly blamed on the massive electricity consumption of new data centers. At a meeting last week with the White House, execs from tech companies, including xAI, signed non-binding pledges to supply their own power for their facilities.

So far, xAI has relied on its Colossus 1 and Colossus 2 data centers in Memphis, Tennessee, just across the Mississippi state line. In Southaven, a roughly 15 minute drive from Memphis, xAI is investing in the proposed power plant, and a large data center dubbed Macrohardrr.

Following the MDEQ’s response on Monday, the NAACP said in a statement that by having the hearing the morning of Election Day, three hours away from the community, “their actions speak volumes.”

“They’re trying to sneak xAI’s data center into the community’s backyard and they don’t care about the people living there,” the letter said.

In February, the NAACP filed a notice of intent to sue xAI over alleged Clean Air Act violations in Southaven.

As CNBC previously reported, residents in the area say they’ve endured round-the-clock noise pollution, and are concerned about air quality and public health issues from xAI’s use of “temporary” natural gas-burning turbines. Research by scientists at the University of Tennessee found that xAI’s earlier turbine use added to air pollution woes in Greater Memphis.

At a public hearing on Feb. 17 in Southaven, about 200 residents turned out to implore state and local officials to deny xAI authorization to rapidly build out data and power infrastructure without greater transparency, community engagement and effective efforts to prevent noise and air pollution.

Physicians, parents, teachers and local officials spoke out at the hearing.

“We are slowly falling out of love with where we have decided to grow our family,” said Taylor Logsdon, a mother of three, citing pollutants, noise levels and negative health effects. “It’s no coincidence that this is happening now. And I feel it will only get worse.”

A recent investigation by Floodlight showed that xAI has been operating more than a dozen “temporary” turbines concurrently in Southaven, as it previously did in Memphis. The company has argued that the turbines did not require federal permits, but environmental compliance experts have disagreed.

Community pushback and regulatory requirements are among the factors driving Musk and other tech executives to explore the potential of data centers in space.

WATCH: SpaceX takes on xAI cash burn after merger

SpaceX takes on xAI cash burn after merger
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Middle East war sends natural gas prices soaring, raising growth shock risk for Europe and Asia


A prolonged surge in natural gas prices triggered by the ongoing war in the Middle East risks denting European growth and hitting some Asian economies hard, analysts have warned.

Global gas prices have soared this week amid fears of a lengthy disruption to energy flows through the Strait of Hormuz — a key shipping route running between Oman and Iran that handles about one-fifth of global LNG trade — as the Iran conflict escalates.

Dutch Title Transfer Facility (TTF) futures, Europe’s benchmark gas contract, rose 35% on Tuesday to more than 60 euros ($69.64) per megawatt-hour. On the week, prices are around 76% higher.

The Northeast Asia LNG benchmark, the Japan-Korea-Marker (JKM), which captures deliveries to Japan, Korea, China and Taiwan, reached a one-year high, and was last seen around 43 euros per megawatt-hour. U.K. natural gas was also sharply higher.

Qatar, one of the world’s largest LNG producers, halted production on Monday following Iranian drone strikes at Ras Laffan Industrial City and Mesaieed Industrial City. Goldman Sachs estimated the pause will reduce near-term global LNG supply by about 19%.

A senior Iranian Revolutionary Guard official later said the country had closed the Strait of Hormuz to all ships, and warned that any vessel attempting to pass through the channel would be attacked. The U.S., however, said the route remained open, according to a Fox News report.

Supply squeeze

Europe and much of Asia are more heavily exposed to potential gas price shocks than the U.S., which benefits from both domestic shale and LNG production.

Around 25% of Europe’s total gas supply is LNG, according to Chris Wheaton, oil and gas analyst at Stifel. With roughly 20% of global LNG production sitting behind the Strait, a prolonged disruption could trigger a supply squeeze comparable to the 2022 shock following Russia’s invasion of Ukraine, he said in a note.

“We are much more concerned about European gas prices than we are about oil prices,” Wheaton said.

Shares of Norwegian energy giant Equinor, one of Europe’s largest natural gas suppliers, hit a 52-week high on Tuesday, adding more than 2%, after closing the previous session up more than 8%.

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Middle East war sends natural gas prices soaring, raising growth shock risk for Europe and Asia

Equinor.

Goldman Sachs, in a note published Monday, warned that a month-long halt to flows through Hormuz risks driving TTF and JKM prices toward 74 euros per megawatt-hour. This was the level that “triggered large natural gas demand responses” during the 2022 European energy crisis.

European gas prices ultimately peaked at 345 euros per megawatt-hour in August 2022 as Russia weaponized its natural gas exports in response to EU sanctions, cutting supply, which pushed up domestic energy bills and sparked a cost-of-living crisis across the continent.

In a separate note later Monday, Goldman raised its April TTF forecast to 55 euros per megawatt-hour from 36 euros per megawatt-hour, with its average second-quarter forecast now at 45 euros/MWh.

‘Negative implications’

Patrick O’Donnell, chief investment strategist at Omnis Investments, said LNG is now a key area of concern for Europe’s wider economy. “That may have more negative implications for the European economy and the reindustrialization that the market has been hoping that we get to see,” O’Donnell told CNBC’s “Squawk Box Europe” Monday.

Indeed, Goldman Sachs analysts led by Sven Jari Stehn noted that “the effects of higher energy prices on GDP tend to be negative for most countries, except for Norway which produces and exports oil.”

Goldman Sachs estimated that a sustained 10% rise in energy prices over four quarters would cut 0.2% off GDP in both the U.K. and the euro area. Switzerland, which relies more on nuclear and renewables, would be flat, while Norway — an oil exporter — would see a 0.1% boost.

In contrast, Goldman analysts see “limited upside risk” to U.S. natural gas prices.

Asian importers also affected

Asia is also vulnerable to supply disruption.

Invesco estimates that almost 58% of India’s LNG imports come from the Middle East, accounting for nearly 2% of its primary energy consumption. Around 27% of Singapore’s LNG imports come from the region, making up 2.2% of primary energy use.

Other Asia-Pacific nations source more than 37% of their LNG from the Middle East, Invesco said, representing almost 3% of primary energy consumption, while 26.6% of China’s LNG imports originate there.

Elias Haddad, global head of markets strategy at BBH, said countries heavily reliant on imported oil and gas with limited fiscal space — including Japan, India, South Africa, Turkey, Hungary and Malaysia — were the most vulnerable to energy disruption shocks, while Norway, Canada and Mexico are among the least exposed.

“A protracted conflict that leads to further disruption in energy production and shipping raises the risk of stagflation and could add to fiscal strains,” Haddad said in a note.