SpaceXAI disclosed in an SEC filing on October 22 that Mississippi environmental regulators say construction started at three of its Southaven data-center sites before required stormwater permit coverage was in place. The Mississippi Department of Environmental Quality issued notices of violation in August to MZX Tech LLC, the SpaceXAI affiliate behind the sites, alleging 'disturbing construction activities at sites occurred prior to coverage under Mississippi's Large Construction Stormwater General Permit.'

The department is seeking civil penalties of up to $25,000 per day, with preliminary claimed exposure of approximately $6.1 million across the three sites: Macrohard and Macroharder, which are operating, and Minihard, which remains under construction — all near Memphis, Tennessee, but across the state line in Mississippi. The company said it is cooperating with the department and is in discussions to resolve the matters through a single agreed order.

The disclosure lands alongside separate litigation over the same campus: a federal judge has kept alive a lawsuit challenging the gas-fired turbines powering the Southaven power plant, which plaintiffs say were constructed and operated without required permits. No final penalty has been set in the stormwater case.