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Musk’s xAI wins permit for datacenter’s makeshift power plant despite backlash

Billionaire’s artificial intelligence company gets approval to run 41 methane gas turbines at its ‘Colossus 2’ in MississippiElon Musk’s artificial intelligence company xAI won approval on Tuesday to run 41 methane gas turbines at its “Colossus 2” datacenter in northern Mississippi. That’s nearly double the amount it has been operating.The turbines will help power xAI’s massive datacenters, which house the company’s “AI supercomputers”, or giant arrays of advanced chips, which in turn power the controversial AI tool Grok, the company’s most recognizable product. Continue reading...

Mar 10, 2026 &03151010202631; 21:15 UTC www.theguardian.com

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Positive for markets

Sentiment score: +65/100

Moderate impact Medium-term (weeks)

WHAT THIS MEANS

Elon Musk's xAI secured regulatory approval to nearly double its methane gas turbine capacity at the Colossus 2 datacenter in Mississippi, enabling significant expansion of its AI infrastructure. This approval supports xAI's computational scaling for its Grok AI product and demonstrates regulatory acceptance of the company's energy-intensive operations despite environmental concerns.

AI CONFIDENCE

75% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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Tesla

TSLAStock

Expected to rise

xAI expansion supports Musk's AI ambitions and potential future revenue streams; regulatory approval reduces operational uncertainty

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Oil (WTI Crude)

CL=FCommodity

Expected to rise

Increased methane gas turbine deployment drives higher natural gas/energy commodity demand

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S&P 500

^GSPCIndex

Expected to rise

AI infrastructure expansion signals continued tech sector growth and investment momentum

PRICE HISTORY

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⚡ SUGGESTED ACTION

Long TSLA on AI infrastructure expansion narrative; monitor energy commodity plays (CL=F) for sustained demand. Consider tech sector exposure given accelerating AI datacenter buildout cycle.

KEY SIGNALS

Regulatory approval for infrastructure expansionDoubled energy capacity indicates aggressive AI scalingEnvironmental concerns offset by operational approvalxAI competitive positioning strengthenedEnergy commodity demand acceleration

SECTORS INVOLVED

TechnologyArtificial IntelligenceEnergyData Centers

Analysis generated on Mar 12, 2026 at 02:11 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by The Guardian Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Musk’s xAI wins permit for datacenter’s makeshift power plant despite backlash

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