SpaceX and xAI: Unauthorized Turbines in Operation Until 2027

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Key Takeaways

1SpaceX plans to remove the unauthorized turbines from xAI by July 2027, transitioning to a natural gas plant.

2The NAACP and the Southern Environmental Law Center are suing xAI for the use of these unpermitted turbines.

3The Department of Justice supports SpaceX, citing national and energy security concerns.

💡Why it matters — This conflict highlights the tensions between technological development and environmental regulations, with implications for national security.

SpaceX and the Energy Transition of xAI

SpaceX recently announced its intention to remove the unauthorized turbines currently powering its xAI data centers located near Memphis. This decision is part of a transition to a natural gas power plant with a capacity of 1.2 gigawatts. However, the complete removal of the turbines will not take effect until July 2027. Currently, SpaceX operates 69 gas turbines for its Colossus data centers, some of which have been in operation for several months. This situation has led to lawsuits filed by the NAACP and the Southern Environmental Law Center, which challenge the use of these turbines without authorization. SpaceX acquired xAI last February.

Massive Investment in Gas Turbines

In its initial public offering filing, SpaceX revealed its intention to invest $2.8 billion in the purchase of gas turbines for its data centers over the next three years. The company claims that the current turbines can be operated without permits because they remain on the trailers used for their transport. However, federal regulations require permits for turbines of the size and use of those employed by xAI, regardless of their support.

Location and Environmental Impact

The turbines are located south of Memphis, in Mississippi, near the Tennessee border. This area is one of the most polluted in the United States, and the gas turbines used by xAI could emit more than 2,000 tons of NOx, a smog-forming pollutant, each year. This situation has raised environmental concerns and legal actions.

Support from the Department of Justice

Last month, the Department of Justice expressed its support for SpaceX in the lawsuit filed by the NAACP. The department justified the use of unauthorized turbines by citing "national, economic, and energy security" considerations. This stance underscores the strategic importance of energy infrastructure for the U.S. government.

Features of the New Power Plant

The new power plant that SpaceX plans to build will include 41 gas turbines, with power ranging from 16.48 megawatts to 50 megawatts, according to permit documents issued by the state of Mississippi. These turbines appear to be different from those currently in operation, although the exact models of the 69 existing turbines have not been confirmed.

Acquisition of APR Energy by Elon Musk

Earlier this year, Elon Musk acquired APR Energy, a company specializing in temporary natural gas power generation. According to records from the company's website before its closure, the turbines in APR Energy's fleet also seem to differ from those mentioned in the permits for the new permanent power plant. It is therefore likely that these turbines are intended for another project not yet announced by SpaceX.