SpaceX · Elon Musk · DOJ · SEC · Datacenter Dynamics
SpaceXAI facing $6.1m fine in Mississippi for building data centers without securing correct permits
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SpaceXAI is facing a fine of up to $6.1 million after starting work on its data centers in Mississippi without the correct permits.
Key facts
- It said: “MDEQ is seeking civil penalties of up to $25,000 per day, with preliminary claimed exposure of approximately $6.1 million across three sites
- Spending on SpaceXAI accounted $16.4 billion of the company’s $19.6 billion capex layout in the quarter
- SpaceX’s Q3 earnings, revealed this week, showed the rocket firm-turned-neocloud made $14.58 billion for the three months to September 30, up 151 percent and beating analysts’ estimates
- The company’s CEO Musk, a long-time backer of President Donald Trump, has donated some $445 million to support Republican party candidates in the upcoming midterm elections
Summary
Elon Musk’s company revealed that it has been issued with a notice by the Mississippi Department of Environmental Quality (MDEQ) which alleges that “disturbing construction activities at sites occurred before coverage under Mississippi’s Large Construction Stormwater General Permit.” It said: “MDEQ is seeking civil penalties of up to $25,000 per day, with preliminary claimed exposure of approximately $6.1 million across three sites.” The notice, detailed in an SEC filing yesterday, was issued to MZX Tech LLC, a SpaceXAI subsidiary. The company said it is “cooperating with MDEQ violated federal law and state regulations by constructing and operating a gas-fired power plant in Southaven, Mississippi, without required permits and is in discussions to resolve the matters through a single agreed order.”