SpaceX said Thursday it will remove the unpermitted gas turbines powering its xAI data centers near Memphis, but the full removal will not be complete until July 2027. The company is instead transitioning to a permanent 1.2 gigawatt natural gas power plant. That plant will take years to build, leaving the contested turbines running in the meantime.
The Turbines and the Lawsuits
SpaceX is currently operating 69 gas turbines for the Colossus data centers, and many have been running for months. The NAACP and the Southern Environmental Law Center have both sued xAI over the unpermitted turbines. The legal pressure has been mounting since SpaceX acquired xAI in February.
SpaceX claims the turbines are allowed without permits because they remain on trailers. Federal regulations, however, require permits for turbines regardless of trailer mounting, due to their size and usage. The turbines sit south of Memphis in Mississippi, just over the Tennessee border. That region is among the most polluted in the U.S.
The environmental stakes are high. xAI's turbines have the potential to emit more than 2,000 tons of smog-forming NOx per year. That is a serious concern for a region already struggling with air quality. Local communities have voiced alarm about the health impacts.
A Delayed Removal
The removal timeline stretches to July 2027, which means the turbines will keep operating for years. SpaceX is building a permanent power plant to replace them, but that facility will not come online quickly. The company has not given a specific completion date for the new plant.
The new power plant will consist of 41 gas turbines ranging from 16.48 MW to 50 MW, per Mississippi permit documents. Those turbines appear different from the current ones, but TechCrunch could not verify the models of the 69 existing turbines. The discrepancy raises questions about what exactly is being built and for whom.
SpaceX plans to buy $2.8 billion worth of gas turbines over the next three years, according to its IPO filing. That is a massive procurement commitment. The figure suggests the company is scaling up its energy infrastructure well beyond the current data center needs.
The Justice Department Steps In
Last month, the Department of Justice sided with SpaceX in the NAACP lawsuit, citing "national, economic, and energy security." That intervention gives SpaceX significant legal cover. The DOJ's position signals that the federal government views the data center operations as strategically important.
The lawsuits have not stopped the turbines from running. They continue to power the Colossus data centers, which are central to xAI's AI training operations. The legal battles are ongoing, but the turbines remain in place for now.
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APR Energy and the Mystery Turbines
Elon Musk bought APR Energy earlier this year. The company specializes in temporary natural gas power. APR Energy's turbines appear different from those in the new power plant permits, based on an archived version of its website.
TechCrunch could not verify the specific models of the 69 existing turbines, so it is unclear if APR Energy supplied them. However, APR Energy's turbines are unlikely to be part of the new Colossus power plant. The new turbine fleet is likely intended for another, unannounced project.
That raises the possibility that SpaceX is planning additional energy-intensive operations. The $2.8 billion turbine purchase over three years suggests a broader expansion. The company has not disclosed what those other projects might be.
What Comes Next
The July 2027 removal date gives SpaceX a long runway, but it also means the pollution continues. The region south of Memphis already bears a heavy environmental burden. The 2,000 tons of potential NOx emissions per year adds to that load.
The DOJ's backing does not resolve the underlying permit questions. Federal regulations are clear that trailer-mounted turbines still need permits. The legal fights will likely continue even as the new power plant takes shape.
For now, the 69 turbines keep humming, powering AI workloads while lawsuits wind through the courts. The permanent plant, with its 41 turbines, will eventually replace them. But that day is years away.
Tim De Chant, senior climate reporter at TechCrunch, authored the report. He holds a PhD in environmental science, policy, and management from UC Berkeley and lectures in MIT's Graduate Program in Science Writing. He was awarded a Knight Science Journalism Fellowship at MIT in 2018.
The story also noted that TechCrunch earns commissions from links in its articles. The company's Disrupt conference is scheduled for October 13-15 in San Francisco.