SpaceX says it will remove the unpermitted gas turbines now powering xAI data centers near Memphis, but the process is expected to stretch into July 2027. The company is shifting toward a permanent, 1.2 gigawatt natural gas power plant for the Colossus data centers.
The timeline matters because the current turbines have already become the focus of litigation, regulatory disagreement and environmental concern in a region described as among the most polluted in the U.S.
A longer runway for temporary power
SpaceX said on Thursday that it is currently operating 69 gas turbines for the Colossus data centers. Many of those turbines have been running for months, according to the source article.
The company says those turbines will be removed as it transitions to the permanent natural gas power plant. However, SpaceX does not expect all of them to be gone until July 2027.
That means the existing power arrangement remains in place during the buildout of a larger, permitted facility. For xAI’s data centers, the issue is not just how much power is needed, but what kind of equipment is being used to provide it and under what regulatory status.
SpaceX also disclosed in its IPO filing that it plans to buy $2.8 billion worth of gas turbines for its data centers over the next three years. That figure points to gas-powered infrastructure as a major part of the company’s data center strategy, at least across the period described in the filing.
The permit dispute
The central disagreement is whether the current turbines can operate without permits. SpaceX claims they can because they remain on the trailers they were shipped on.
Federal regulations, however, say the turbines xAI has been using require permits regardless of what they sit on. The reason given in the source is their size and how they are being used.
The NAACP and Southern Environmental Law Center have sued xAI over the use of the unpermitted turbines. SpaceX acquired xAI in February, placing the dispute inside a broader company structure that now includes the data center operation and the power transition plan.
Last month, the Department of Justice sided with SpaceX in the NAACP’s lawsuit. The department described the unpermitted turbines as a matter of “national, economic, and energy security.”
That position does not erase the core tension in the case. On one side is SpaceX’s argument that the equipment’s placement on trailers changes the permitting question. On the other side are federal regulations described in the source as requiring permits because of the turbines’ size and use.
Why location and emissions matter
The turbines are located south of Memphis in Mississippi, just over the border with Tennessee. The source article describes the region as among the most polluted in the U.S.
That context makes the emissions potential especially important. The gas turbines being used by xAI have the potential to emit more than 2,000 tons of smog-forming NOx per year.
NOx is central to the environmental concern described in the source because it is tied to smog formation. The issue is not only that the turbines exist, but that they are operating in a heavily polluted region while their permitting status is being challenged.
The situation also shows how power demand from data centers can create local infrastructure questions quickly. Colossus needs electricity, and the source describes gas turbines as the way SpaceX is supplying that power while a permanent plant is planned.
What the permanent plant changes
The permanent power plant SpaceX is building will consist of 41 gas turbines, according to permit documents issued by the state of Mississippi. Those turbines range in size from 16.48 megawatts to 50 megawatts.
The new plant appears to use different turbines from the 69 existing units, although TechCrunch could not verify the specific models of the turbines now in use. That distinction matters because the current equipment and the planned permanent equipment are not presented as the same fleet.
Earlier this year, Elon Musk bought APR Energy, a company that specializes in temporary natural gas power. Based on an archive of APR Energy’s site before it was taken down, the turbines in that company’s fleet also appear to differ from those cited in permits for the new permanent Colossus power plant.
Because APR Energy’s turbines are not likely to be part of the new Colossus power plant, the source article concludes that the new turbine fleet is likely intended for another, unannounced project.
The open questions now
The facts now point to a drawn-out transition rather than an immediate end to the current turbine setup. SpaceX has a removal plan, but the end point is July 2027.
Several details remain important to watch within the facts already public:
- whether the 69 existing gas turbines continue operating through the full transition period;
- how the lawsuit over unpermitted turbines proceeds after the Department of Justice’s position;
- how the 1.2 gigawatt natural gas power plant changes the power setup for Colossus;
- whether the turbine purchases described in SpaceX’s IPO filing are tied to additional data center projects.
For now, the immediate picture is clear. SpaceX is keeping the current xAI turbines in service while it builds a larger, permanent natural gas power plant, and the full removal of the unpermitted equipment is not expected until July 2027.