SpaceX delays removal of unpermitted gas turbines powering xAI’s data centers until July 2027

SpaceX told TechCrunch it will continue operating 69 unpermitted gas turbines to power xAI’s Colossus data centers near Memphis until at least July 2027. The company says it plans to replace them with a permanent 1.2 gigawatt natural gas power plant, but the existing turbines will remain in place for another year during the transition.

Federal and state records indicate the turbines are located in Mississippi, just south of the Tennessee border, an area already designated as among the most polluted in the U.S. The turbines have the potential to emit more than 2,000 tons of smog-forming nitrogen oxides per year, according to environmental filings.

The Department of Justice recently filed in support of SpaceX in litigation brought by the NAACP and the Southern Environmental Law Center, arguing that the unpermitted turbines serve "national, economic, and energy security" interests. The DOJ’s position underscores how AI infrastructure buildouts are intersecting with federal energy policy.

Mississippi permit documents describe the new permanent power plant as consisting of 41 gas turbines ranging from 16.48 megawatts to 50 megawatts. TechCrunch could not verify whether these new turbines are the same models as the 69 temporary units currently in use.

SpaceX acquired xAI in February and separately disclosed in an IPO filing plans to purchase $2.8 billion worth of gas turbines for its data centers over the next three years. The company asserts the existing turbines do not require permits because they remain on their shipping trailers, though federal regulations require permits based on turbine size and usage context, not placement.

Earlier this year, Elon Musk’s acquisition of APR Energy, a provider of temporary natural gas power, suggests SpaceX may deploy similar turbine fleets at other, unannounced projects, as APR Energy’s fleet appears distinct from the new permanent plant’s permitted turbines.