SpaceX has reached an agreement to remove the temporary gas turbines that supply power to its Colossus AI data center complex in Mississippi. The company has committed to clearing all units by July 2027. This follows an arrangement with the Mississippi Department of Environmental Quality, which outlines a timeline for decommissioning all 69 mobile turbines currently at the power facility in Southaven. The Colossus facilities serve as the training and operations hub for xAI’s Grok models, and SpaceX has also pledged to lease computing capacity to other AI companies such as Anthropic, for now at least.
Permit dispute and legal battle
The mobile gas turbines in Southaven became a focal point in a legal dispute. In April, the NAACP, joined by the Southern Environmental Law Center, filed a lawsuit against xAI. The suit alleged that 27 of the company’s gas turbines were being operated without the required air quality permit, leading to pollution in nearby communities. SpaceX contested these claims, arguing that the turbines, which are mounted on flatbed trailers, qualify for a temporary mobile exemption under environmental regulations. This exemption allows such units to operate without an air permit for up to one year.
The Justice Department has backed SpaceX’s position in the case, stating that the lawsuit threatened national and energy security by attempting to disrupt the power supply for AI systems used in military operations. In a public statement, the department framed the NAACP’s lawsuit as a direct challenge to advancements in artificial intelligence that support critical infrastructure and national defense.
AI and energy demand
Gas turbines are increasingly used by AI firms due to the enormous power demands of data centers. These facilities must operate continuously, requiring a vast and reliable energy supply. Earlier this year, SpaceX acquired xAI in a strategic move that preceded its high-profile IPO this summer. The merger was a key selling point to investors, who were promised unprecedented growth potential. In the IPO filing, SpaceX projected a total addressable market of $28.5 trillion, with about $26.5 trillion of that attributed to AI-related revenue. The filing also revealed that the company plans to invest nearly $3 billion in new gas turbines over the next few years to meet this demand.
As part of its long-term strategy, SpaceX is constructing a 1.2 gigawatt permanent natural-gas power plant in Southaven. Once operational, this facility will replace the temporary mobile units and will feature 41 permanent turbines operating under a Clean Air Act permit. That permit was secured by SpaceXAI in March 2026, setting the stage for a transition away from the temporary equipment. The company plans to begin removing the mobile turbines as early as August, but it has until July 2027 to complete the process. The removal will be carried out in phases as the 1.2GW power plant gradually comes online.
The removal of the turbines marks a key step in SpaceX’s ongoing expansion and integration of xAI into its broader business strategy. While the company has emphasized environmental compliance and regulatory cooperation, the broader debate over the environmental and public health impacts of gas-powered data center infrastructure continues. SpaceX has also equipped all its mobile turbines with "advanced emission control technologies" to reduce their environmental impact. SpaceX has not yet responded to requests for additional comment on the matter.