SpaceX Delays Full Removal of Unpermitted xAI Turbines Until 2027

SpaceX announced on Thursday that it will remove the unpermitted gas turbines powering its xAI data centers near Memphis, Tennessee, as part of a transition to a permanent 1.2-gigawatt natural gas power plant. However, the turbines will not be fully removed until July 2027. The company is currently operating 69 gas turbines to support the Colossus data centers, many of which have been running for months. The NAACP and the Southern Environmental Law Center have filed a lawsuit against xAI over the operation of these turbines without the necessary permits. SpaceX acquired xAI in February 2026, and in its IPO filing, the company stated plans to purchase $2.8 billion worth of gas turbines for its data centers over the next three years. SpaceX argues that the existing turbines can operate without permits because they remain on trailers, but federal regulations require permits for turbines of this size and usage, regardless of their mounting. The turbines are located south of Memphis in Mississippi, an area already burdened with high pollution levels. xAI's turbines have the potential to emit over 2,000 tons of smog-forming nitrogen oxides (NOx) annually. Last month, the Department of Justice sided with SpaceX in the lawsuit, citing the turbines as a matter of "national, economic, and energy security." The new permanent power plant will comprise 41 gas turbines, ranging from 16.48 megawatts to 50 megawatts, according to permits issued by Mississippi. These appear to differ from the current turbines, though TechCrunch could not verify the specific models in use. Earlier in 2026, Elon Musk acquired APR Energy, a company specializing in temporary natural gas power. Archived records of APR Energy's fleet show turbines that also differ from those specified in the new plant's permits, suggesting the APR Energy turbines may be intended for a separate, unannounced project.

via TechCrunch AI