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SpaceX xAI turbines will stay in service until July 2027

SpaceX says it will phase out 69 temporary turbines for xAI data centers as it builds a 1.2-gigawatt gas plant in Mississippi.

Jordan Bell

By Jordan Bell · Startups & Deals Reporter

· 3 min read

SpaceX xAI turbines will stay in service until July 2027
Photo: TechCrunch

SpaceX xAI turbines that have drawn a legal fight over air permits are set to remain in use for months longer while the company builds a permanent power plant. For investors tracking SpaceX’s IPO path and the cost of AI infrastructure, the update shows how power supply, environmental rules and data-center spending are becoming tied together.

SpaceX said Thursday in an update on xAI’s Memphis operations that it plans to remove the temporary gas turbines now powering the Colossus data centers. The full removal is not scheduled until July 2027, according to the company.

The company said it is operating 69 gas turbines for Colossus. Those data centers need large amounts of electricity to run AI computing equipment, and gas turbines generate power by burning natural gas to spin equipment that produces electricity.

When will SpaceX remove the xAI turbines?

SpaceX said the existing turbines will be taken out as it shifts to a permanent 1.2-gigawatt natural gas power plant. A gigawatt equals 1,000 megawatts, so the planned plant would be a large dedicated power source for the data centers.

The turbine dispute predates SpaceX’s ownership of xAI. The NAACP and the Southern Environmental Law Center sued xAI over the use of turbines they say lacked required permits. SpaceX acquired xAI in February.

SpaceX has argued that the current turbines can run without permits because they remain mounted on the trailers used to transport them. Federal regulations, however, say turbines of the kind xAI has been using need permits based on their size and use, regardless of whether they sit on trailers.

The equipment is located south of Memphis in Mississippi, just across the Tennessee border. The surrounding region ranks among the most polluted areas in the United States, and the gas turbines used by xAI have the potential to emit more than 2,000 tons of NOx each year, according to the reported emissions potential. NOx, or nitrogen oxides, are pollutants that help form smog.

The Department of Justice last month backed SpaceX in the NAACP lawsuit, saying the unpermitted turbines involved issues of “national, economic, and energy security.”

What SpaceX is building instead

Permit documents issued by Mississippi describe a new power plant with 41 gas turbines. The listed units range from 16.48 megawatts to 50 megawatts.

Those permitted turbines appear to differ from the 69 turbines currently being used, though TechCrunch reported it could not verify the specific models of the existing fleet. SpaceX also disclosed in its IPO filing that it expects to buy $2.8 billion of gas turbines for its data centers over the next three years.

Elon Musk also bought APR Energy earlier this year. APR Energy specializes in temporary natural gas power, and an archived version of the company’s website showed a turbine fleet that also appeared to differ from the models listed in Mississippi permits for the permanent Colossus plant.

Because APR Energy’s equipment does not appear likely to be part of the permitted Colossus plant, TechCrunch reported that the newly acquired turbine fleet is likely meant for another project that has not been announced.

This story draws on original reporting from TechCrunch.

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