SpaceX won’t remove all of xAI’s unpermitted turbines for another year

SpaceX has confirmed that it will phase out the unpermitted gas turbines currently powering xAI’s Colossus data centers near Memphis. However, the transition to a permanent, 1.2-gigawatt natural gas facility will be a slow process, with the existing, controversial equipment expected to remain in operation until July 2027.

A Prolonged Transition

Currently, SpaceX is running 69 gas turbines to support the massive energy demands of the Colossus data centers. Many of these units have been active for several months, sparking significant legal and environmental pushback. The NAACP and the Southern Environmental Law Center have filed lawsuits against xAI, challenging the legality of these operations.

Despite the legal pressure, the company maintains that its current setup is compliant. SpaceX argues that because the turbines remain on the trailers used for their delivery, they do not require the same permitting as stationary power plants. Federal regulators disagree, noting that the size and operational nature of these turbines necessitate formal permits regardless of their mounting.

"The region is among the most polluted in the U.S., and xAI has been operating gas turbines that have the potential to emit more than 2,000 tons of smog-forming NOx per year."

Legal and Environmental Stakes

The location of these data centers—situated just south of Memphis in Mississippi—has placed them at the center of an environmental justice debate. The area is already burdened by high pollution levels, and the addition of these turbines has raised alarms regarding air quality and public health.

In a significant development last month, the Department of Justice intervened in the NAACP’s lawsuit. The DOJ sided with SpaceX, characterizing the continued use of the unpermitted turbines as a matter of “national, economic, and energy security.”

Future Infrastructure Plans

Looking ahead, SpaceX is constructing a permanent power plant that will utilize 41 gas turbines. According to permit documents from the state of Mississippi, these units will range in capacity from 16.48 megawatts to 50 megawatts.

Key details regarding the company's energy strategy include:

• Long-term Investment: SpaceX plans to spend approximately $2.8 billion on gas turbines over the next three years, as outlined in recent IPO filings.
• Equipment Discrepancies: The turbines currently in use appear to differ from those slated for the new permanent facility.
• The APR Energy Connection: Elon Musk’s acquisition of APR Energy earlier this year added a fleet of temporary power solutions to the company's portfolio. However, analysis suggests these units are likely intended for a separate, unannounced project rather than the Colossus site.

As SpaceX navigates the complexities of scaling its infrastructure, the timeline for decommissioning the current, unpermitted fleet remains a point of contention. While the shift to a permanent facility is underway, the local community will continue to deal with the emissions from the existing turbines for at least another year.