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[ARTICLE · art-35748] src=startupfortune.com ↗ pub= topic=artificial-intelligence verified=true sentiment=↓ negative

Big Tech is building secret power plants next to its AI data centers and the government is helping

Elon Musk's xAI installed 27 unpermitted gas turbines in a Black Mississippi neighborhood to power its Colossus data center, and the Trump DOJ moved to dismiss a lawsuit challenging the project, citing national security. The case highlights how Big Tech is building off-grid power plants for AI data centers, bypassing environmental reviews and public oversight.

read1 min views1 publishedJun 21, 2026
Big Tech is building secret power plants next to its AI data centers and the government is helping
Image: Startupfortune (auto-discovered)

Elon Musk's xAI erected 27 unpermitted gas turbines in a Black Mississippi neighborhood to feed its Colossus data center. The Trump DOJ just moved to dismiss the lawsuit trying to stop it, citing national security.

There's a power grab happening in America, and it isn't the kind that makes the front page. Across the country, Big Tech companies are quietly building off-grid natural gas power plants next to their AI data centers, bypassing the environmental reviews and public comment periods that govern every other major industrial project. And when communities push back, they're now learning the federal government may not be on their side.

The starkest example is in Southaven, Mississippi, just south of Memphis. Elon Musk's xAI installed 27 trailer-mounted gas turbines at a site there without ever obtaining an air permit, creating a de facto 495-megawatt power station to feed its Colossus 2 data center. No permits, no community notice, no public hearings. Memphis had already been ranked an

Also read: OpenAI's Pentagon deal the morning after Anthropic's ban signals how Washington now picks AI winnersThe Anthropic blackout showed every AI startup what export control authority over models actually looks likeEnterprise AI budgets hit a wall and the reckoning is reshaping how companies spend and how founders pitch

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