Elon Musk's SpaceXAI hit with multi-million dollar fine for building Mississippi data centers without the right permits
Mississippi regulators say three SpaceXAI sites began construction without stormwater permits, exposing Musk's company to potential penalties of $6.1 million.
Mississippi regulators have levied a multi-million dollar fine against SpaceXAI for constructing three data centers without obtaining the proper stormwater permits. The company could face penalties totaling $6.1 million across the three affected facilities, with daily penalties of up to $25,000 being sought by state officials. The affected sites, known as Macrohard, Macroharder, and Minihard, were allegedly working before the required stormwater authorization was in place.
The facilities, which support operations around Memphis, Tennessee, now fall under Mississippi's environmental regulations. Although SpaceXAI confirmed it is cooperating with state officials and exploring a possible settlement, the company has not disclosed any finalized terms. Additionally, the NAACP has filed a lawsuit against SpaceXAI for allegedly constructing and operating gas turbines at a Southaven facility without securing the necessary federal and state environmental permits.
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