SpaceX has said it will remove unpermitted gas turbines powering xAI’s Colossus data centers near Memphis as it transitions to a permanent 1.2 gigawatt natural gas power plant, with full removal not expected until July 2027. The company is currently operating 69 gas turbines to run the facilities, some of which have been in use for months, drawing a lawsuit from the NAACP and Southern Environmental Law Center over the lack of permits.
SpaceX, which acquired xAI in February, has said in IPO filings that it plans to spend $2.8 billion on additional gas turbines for its data centers over the next three years. The company maintains its current turbines don’t require permits because they remain mounted on their shipping trailers, though federal regulations indicate permits are required based on the turbines’ size and use. The turbines sit in Mississippi, just south of Memphis, in a region already among the most polluted in the country, with the potential to emit more than 2,000 tons of smog-forming NOx annually.
The Department of Justice sided with SpaceX last month, characterizing the unpermitted turbines as a matter of national, economic, and energy security. According to state permit documents, the new permanent plant will use 41 turbines ranging from roughly 16 to 50 megawatts, distinct from the current fleet and from turbines associated with APR Energy, a company Elon Musk acquired earlier this year, suggesting that fleet may be intended for a separate, unannounced project.
