SpaceX announced plans to phase out unpermitted gas turbines currently powering its xAI data centers near Memphis, transitioning instead to a new, permanent natural gas power plant with a capacity of 1.2 gigawatts. Despite this commitment, the company will not fully remove all existing turbines until July 2027. At present, SpaceX operates 69 gas turbines at the Colossus data centers, many of which have been active for several months.

The continued use of these turbines without proper permits has led to legal challenges. The NAACP and Southern Environmental Law Center filed a lawsuit against xAI over the operation of more than 400 megawatts of unpermitted gas turbines. Although SpaceX contends that the turbines are exempt from permitting requirements because they remain on trailers, federal regulations state that their size and usage mandate permits regardless of their placement. The Department of Justice recently sided with SpaceX, citing the turbines' operation as a critical issue of national economic and energy security.

The new power plant under construction will feature 41 gas turbines of various sizes ranging from approximately 16 to 50 megawatts, as detailed in Mississippi state permit documents. This turbine fleet differs from the currently deployed units, though specific model details about the existing 69 turbines haven't been confirmed. Elon Musk's acquisition of APR Energy earlier this year, a company specializing in temporary natural gas power, is noteworthy; its turbine models seem distinct from those planned for the new plant, suggesting additional projects might be underway.

The turbines are situated just south of Memphis, in a region notorious for high pollution levels. Environmental concerns are heightened because the turbines have the potential to emit over 2,000 tons of smog-forming nitrogen oxides annually. This controversy highlights the tension between SpaceX's rapid expansion of AI-driven infrastructure and the environmental and regulatory challenges posed by temporary power solutions at the xAI data centers.