SpaceX to Dismantle Unpermitted Gas Turbines in Memphis Within Year, Transition to 1.2 GW Permanent Plant

SpaceX announced it will gradually dismantle natural gas turbines mounted on trailers in Memphis within a year. These turbines had been powering xAI's Colossus data center. According to the plan released by SpaceX, the company will transition to a permanent 1.2-gigawatt natural gas power plant, but the temporary turbines will not be fully removed until July 2027. A total of 69 natural gas turbines are currently in operation, many of which have been running for several months.

The unpermitted turbines have sparked environmental controversy. The NAACP and the Southern Environmental Law Center had previously filed a lawsuit against xAI. SpaceX completed its acquisition of xAI in February 2026. In its initial public offering filing, SpaceX disclosed plans to purchase $2.8 billion worth of natural gas turbines for its data centers over the next three years.

SpaceX argues that because the existing turbines have remained on transport truck trailers, they do not require operating permits. However, US federal regulations clearly state that the size and purpose of these units determine that they must obtain the appropriate permits regardless of the carrier on which they are mounted. The turbines are located in southern Mississippi, near the Tennessee border, an area that is among the most polluted in the country.

Last month, the US Department of Justice sided with SpaceX in the lawsuit brought by the NAACP, claiming that the unpermitted turbines involve matters of "national, economic, and energy security." According to permits issued by the state of Mississippi, the new power plant under construction by SpaceX consists of 41 natural gas turbines with individual capacities ranging from 16.48 megawatts to 50 megawatts, a different model from the 69 turbines currently in operation.