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SpaceX to keep xAI’s unpermitted turbines for another year

Gas turbines are visible at an xAI data center on Riverport Rd in Memphis, TN on April 25, 2025.

Image Credits:Brandon Dill for The Washington Post / Getty Images

SpaceX to Remove Unpermitted Turbines for xAI Data Centers

On Thursday, SpaceX announced its decision to phase out unpermitted turbines currently powering its xAI data centers near Memphis, Tennessee. The transition aims to pave the way for a new, permanent 1.2-gigawatt natural gas power plant slated to enhance operational capabilities.

Timeline for Transition

Despite the announcement, SpaceX confirmed that the unpermitted turbines will not be completely dismantled until July 2027. Presently, the company is operating 69 gas turbines at its Colossus data centers, many of which have been in use for several months. The turbines’ legality has come under scrutiny, leading to legal action from the NAACP and the Southern Environmental Law Center, following SpaceX’s acquisition of xAI in February.

Plans for New Gas Turbines

In its recent IPO filing, SpaceX disclosed its intent to invest $2.8 billion in gas turbines for its data centers over the next three years. The turbines will significantly boost energy output and sustainability efforts for the company’s operations.

Legal Controversy Surrounding Turbines

SpaceX asserts that it can operate the current turbines without permits, citing that they remain on the trailers they were delivered on. However, federal regulations stipulate that turbines of this size require permits, regardless of their transport status. The xAI turbines are located just south of Memphis, Mississippi, in a region known to be among the most polluted in the United States. They have the potential to emit over 2,000 tons of smog-forming nitrogen oxides (NOx) annually.

In a recent development, the Department of Justice backed SpaceX in its legal dispute with the NAACP, framing the situation as one of “national, economic, and energy security.”

New Power Plant Specifications

The proposed power plant will comprise 41 gas turbines, each ranging in capacity from 16.48 megawatts to 50 megawatts. Mississippi state permit documents indicate that these turbines will differ from those currently in operation, although it has not been confirmed which models will be used.

Acquisition of APR Energy

In an additional strategic move, Elon Musk recently acquired APR Energy, a firm known for specializing in temporary natural gas power solutions. An archived version of APR Energy’s website suggests that the turbines from its fleet may not align with the specifications required for the permitting of the new permanent power plant.

This raises questions about the future use of APR Energy’s turbines, as they are likely designated for a different, yet-to-be-announced project. The development hints at SpaceX’s broader ambitions in the energy sector, focusing on scalable, sustainable energy sources.

Implications for the Memphis Area

The Memphis area, where these turbines are being utilized, has long struggled with pollution issues. As a result, the ongoing operations of unpermitted turbines may further exacerbate environmental challenges in the region. In this context, SpaceX’s move to construct a permanent natural gas power plant could be seen as a step toward reducing emissions while providing a reliable energy source for its expanding data operations.

Conclusion

As SpaceX proceeds with its plans to remove unpermitted turbines and construct a permanent gas power plant, various stakeholders will be closely monitoring the developments. The legal ramifications and environmental impacts continue to be pressing concerns for the NAACP, the Southern Environmental Law Center, and local communities.

With its ambitious investments in energy infrastructure and temporary power solutions, SpaceX positions itself well to meet the growing demands of its data centers. However, the long-term sustainability of these initiatives will depend on stringent regulatory adherence and active community engagement to mitigate environmental impacts in one of the nation’s most polluted regions.

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