Key facts
- SpaceX will continue to operate unpermitted gas turbines for xAI data centers until July 2027.
- The company is transitioning to a permanent 1.2 gigawatt natural gas power plant.
- SpaceX acquired xAI in February and is currently using 69 gas turbines.
- Environmental groups are suing xAI over the turbines' potential to emit over 2,000 tons of smog-forming NOx annually.
- The Department of Justice has supported SpaceX's position, citing national security concerns.
SpaceX has announced that the unpermitted gas turbines powering its xAI data centers near Memphis will remain in operation until July 2027, as the company transitions to a permanent 1.2 gigawatt natural gas power plant. SpaceX acquired xAI in February and is currently utilizing 69 gas turbines for its Colossus data centers, many of which have been operating for months without permits.
The NAACP and the Southern Environmental Law Center have filed a lawsuit against xAI, citing concerns over the turbines' potential to emit over 2,000 tons of smog-forming nitrogen oxides (NOx) annually in a region already identified as one of the most polluted in the U.S.
SpaceX contends that the turbines do not require permits because they are still on the trailers they were shipped on. However, federal regulations stipulate that turbines of their size and operational capacity require permits regardless of their mounting. The company plans to invest $2.8 billion in new gas turbines over the next three years for its data centers.
Earlier this year, Elon Musk acquired APR Energy, a company specializing in temporary natural gas power. The turbines from APR Energy are not expected to be part of the new permanent power plant, suggesting they may be intended for another undisclosed project.
In a recent development, the Department of Justice has sided with SpaceX in the ongoing lawsuit, characterizing the operation of the unpermitted turbines as a matter of "national, economic, and energy security."