SpaceX won’t remove all of xAI’s unpermitted turbines for another year
SpaceX is building a new power plant for xAI's Colossus data centers, but it won't remove existing, unpermitted turbines for many more months.
SpaceX said on Thursday that it will remove the unpermitted turbines powering its xAI data centers near Memphis as it transitions to a permanent, 1.2 gigawatt natural gas power plant.
The turbines won’t be completely removed until July 2027, though. SpaceX said that it’s currently operating 69 gas turbines to power the Colossus data centers, of which many have been operating for months. The NAACP and Southern Environmental Law Center have sued xAI over the use of unpermitted turbines.
SpaceX acquired xAI in February. In its IPO filing, SpaceX said it plans to buy $2.8 billion worth of gas turbines for its data centers over the next three years.
The company claims that it is allowed to operate the existing turbines without permits because they remain on the trailers they were shipped on. But federal regulations say that the turbines xAI has been using, regardless of what they sit on, require permits because of their size and how they’re being used.
The turbines are currently located south of Memphis in Mississippi, just over the border with Tennessee. 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 NO x per year.
Last month, the Department of Justice sided with SpaceX in the NAACP’s lawsuit, saying the unpermitted turbines were a matter of “national, economic, and energy security.”
The new power plant that SpaceX is building will consist of 41 gas turbines ranging in size from 16.48 megawatts to 50 megawatts, according to permit documents issued by the state of Mississippi. They appear to be different from those currently in use, though TechCrunch could not verify the specific models of the 69 existing turbines.
Earlier this year, Elon Musk bought APR Energy, a company that specializes in temporary natural gas power. Based on an archive of the company’s site before it was taken down, the turbines in the company’s fleet also appear to be different from those cited in permits for the new, permanent power plant.
Given that APR Energy’s turbines aren’t likely to be part of the new Colossus power plant, the new turbine fleet is likely intended for another, unannounced project.
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Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor.
De Chant is also a lecturer in MIT’s Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St. Olaf College.
You can contact or verify outreach from Tim by emailing tim.dechant@techcrunch.com .
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Key takeaways
- SpaceX faces regulatory challenges that could impact its reputation and operations.
- The transition to a gas power plant raises questions about reliance on fossil fuels in a sustainability context.
- The acquisition of APR Energy may indicate new projects that SpaceX is planning, suggesting a diversification strategy.
Editorial analysis
SpaceX's decision to delay the removal of unpermitted turbines from xAI raises significant questions about environmental regulation and corporate responsibility. For the Brazilian tech sector, which is growing and seeking to attract investment, this situation can serve as a warning about the importance of operating within legal and environmental norms. Non-compliance can lead to lawsuits and reputational damage, something Brazilian companies should avoid as they expand into the global market.
Moreover, the construction of a new gas power plant for xAI's data centers may have broader implications for the tech and energy industries. The transition to a more permanent and regulated energy source can be seen as a positive step, but it also raises questions about reliance on fossil fuels at a time when sustainability is a growing priority. Brazil, which has significant potential in renewable energy, could benefit from observing how SpaceX navigates this transition and what lessons can be applied locally.
Finally, Elon Musk's acquisition of APR Energy suggests that SpaceX is preparing for future projects that may not be immediately clear. This could indicate a diversification strategy that could be replicated by Brazilian companies in emerging sectors like clean energy and technology. What to watch for next is how SpaceX will manage regulatory pressure and public expectations as it moves forward with its expansion and innovation plans.
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