Industry

SpaceX to Replace Unpermitted xAI Turbines with 1.2 GW Natural Gas Plant by July 2027

SpaceX said it will remove 69 unpermitted gas turbines now powering xAI’s Colossus data centers near Memphis as it constructs a permanent 1.2 gigawatt natural gas power plant.

SpaceX to Replace Unpermitted xAI Turbines with 1.2 GW Natural Gas Plant by July 2027

SpaceX said on Thursday it will remove the unpermitted gas turbines currently powering xAI’s Colossus data centers near Memphis as it moves to a permanent 1.2 gigawatt natural gas power plant. The company stated the turbines will not be fully removed until July 2027.

Which turbines and where?

SpaceX said it is currently operating 69 gas turbines to supply the Colossus data centers. The turbines are located south of Memphis in Mississippi, just across the Tennessee border. The region is among the most polluted in the United States.

Legal and regulatory disputes

The NAACP (National Association for the Advancement of Colored People) and the Southern Environmental Law Center have sued xAI over the use of the unpermitted turbines. SpaceX’s position is that the existing turbines do not require permits because they remain on the trailers they were shipped on. Federal regulations, however, indicate that the turbines in use by xAI require permits based on their size and how they are being employed.

Last month the U.S. Department of Justice sided with SpaceX in the NAACP’s lawsuit, describing the matter as one of “national, economic, and energy security.”

Environmental impact

The turbines in operation have the potential to emit more than 2,000 tons per year of smog-forming nitrogen oxides (NOx), a level that raises meaningful air-quality and health concerns in an already burdened region.

The new power plant and procurement plans

Permit documents issued by the state of Mississippi show the new 1.2 GW plant will comprise 41 gas turbines ranging from 16.48 megawatts to 50 megawatts each. These turbines appear to differ from the models currently in use, although TechCrunch could not independently verify the specific models of the 69 existing units.

SpaceX acquired xAI in February. In its IPO filing, SpaceX said it plans to purchase $2.8 billion worth of gas turbines for its data centers over the next three years.

Related acquisitions and possible further projects

Earlier this year, Elon Musk acquired APR Energy, a company that specializes in temporary natural gas power. An archived version of APR Energy’s website suggests the turbines in that fleet also differ from those listed in the permits for the new permanent plant. That discrepancy suggests APR Energy’s turbines are unlikely to be part of the Colossus permanent plant and may be intended for another, as-yet-unannounced project.

Why this matters

The issue touches on corporate energy strategy for large-scale data centers, environmental and public-health impacts in a heavily polluted area, and legal questions about how temporary versus permanent power installations are regulated. The July 2027 removal timeline sets a deadline for the turbines’ transition as regulatory and legal processes continue.

Brief summary

SpaceX will remove the unpermitted turbines and build a 1.2 GW, 41-turbine natural gas plant in Mississippi; the current 69 turbines will remain in operation until no later than July 2027. The case involves litigation from civil-rights and environmental groups, a supportive stance from the Department of Justice, and multi-billion-dollar turbine procurement plans disclosed in SpaceX’s IPO filing.