SpaceX will replace unpermitted gas turbines at xAI data centers with a permanent 1.2 gigawatt power plant.
SpaceX announced on Thursday that it will transition to a permanent 1.2 gigawatt natural gas power plant to power its xAI data centers near Memphis. The company will remove the unpermitted turbines currently powering the Colossus data centers by July 2027. Currently, SpaceX is operating 69 gas turbines that have been used without official permits due to their size and usage. While SpaceX argued that the turbines remained on their shipping trailers, federal regulations require permits for turbines of this scale. The NAACP and Southern Environmental Law Center sued xAI over the lack of permits, but the Department of Justice sided with SpaceX, citing national, economic, and energy security. The new power plant will feature 41 gas turbines and is expected to replace the current fleet. This move follows SpaceX's acquisition of xAI in February and a plan to invest $2.8 billion in gas turbines over the next three years.