SpaceX announced on Thursday that it plans to remove the unpermitted turbines currently powering its xAI data centers near Memphis, as it shifts toward a permanent 1.2 gigawatt natural gas power facility. However, the turbines won't be fully taken out until July 2027. The company stated it is now running 69 gas turbines to support the Colossus data centers, many of which have been operational for several months. Both the NAACP and the Southern Environmental Law Center have filed lawsuits against xAI over the use of these unpermitted turbines.

SpaceX acquired xAI in February. In its IPO filing, the company indicated it intends to purchase $2.8 billion worth of gas turbines over the next three years for its data center operations. SpaceX argues that it can operate the existing turbines without permits because they remain mounted on the trailers they were delivered on. Yet federal regulations stipulate that the turbines xAI has employed—regardless of their mounting—require permits due to their scale and operational use.

The turbines are situated south of Memphis in Mississippi, just across the Tennessee border. This area ranks among the most polluted in the country, and xAI's gas turbines have the potential to release over 2,000 tons of smog-forming NOx annually. Last month, the Department of Justice sided with SpaceX in the NAACP's lawsuit, asserting that the unpermitted turbines involve matters of "national, economic, and energy security."

The new power plant SpaceX is constructing will feature 41 gas turbines, ranging from 16.48 megawatts to 50 megawatts each, according to permit documents from the state of Mississippi. Earlier this year, Elon Musk acquired APR Energy, a firm specializing in temporary natural gas power. Based on archived versions of the company's website before it was removed, the turbines in APR Energy's fleet appear to differ from those listed in the permits for the new permanent facility. Since APR Energy's turbines are unlikely to be part of the new Colossus power plant, the fresh turbine lineup is probably intended for a separate, undisclosed venture.