SpaceX AI Faces Potential $6.1 Million Penalty Over Mississippi Data Centers

Oct 24, 2026
Mississippi regulators are seeking penalties from MZX Tech over construction activity at three data center sites before the company obtained stormwater permit coverage.

MZX Tech, a subsidiary of SpaceX AI, could face penalties of about $6.1 million over construction activity at three Mississippi data center sites, according to Data Center Dynamics. The company disclosed in an SEC filing that the Mississippi Department of Environmental Quality issued violation notices in August 2026.

The regulator alleges that land disturbing construction began before the sites received coverage under Mississippi's Large Construction Stormwater General Permit. It is seeking civil penalties of up to $25,000 per day, with preliminary exposure totaling about $6.1 million.

The three sites are Macrohard, Macroharder and Minihard, located near Memphis but across the state line in Mississippi. Macrohard and Macroharder are operating, while Minihard remains under construction. The company is discussing a single agreed order with the regulator to resolve the cases.

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