SpaceXAI to Phase Out Temporary Gas Turbines at Mississippi AI Data Center by 2027

SpaceX’s artificial-intelligence subsidiary, SpaceXAI, announced an agreement with the Mississippi Department of Environmental Quality that sets a schedule for eliminating all 69 mobile gas turbines used at its Southaven power site. The company may begin removals as early as August, but the agreement allows the final turbine to remain until July 2027. The plan is tied to the commissioning of a permanent 1.2-gigawatt natural-gas power plant, which will include 41 permanent turbines authorized under a Clean Air Act permit issued in March 2026.

Gizmodo

The Southaven site supplies electricity to the Colossus 2 data center in Memphis, where SpaceXAI trains and runs xAI’s Grok models and leases capacity to other AI firms such as Anthropic. AI data centers increasingly rely on gas turbines to meet continuous, high-volume power demands. In April, the NAACP and the Southern Environmental Law Center sued xAI, alleging operation of 27 turbines without a permit and claiming pollution of nearby communities. SpaceXAI contended that the turbines, mounted on flatbed trailers, qualify for a temporary-mobile exemption that permits operation without an air permit for up to one year.

Gizmodo

• 69 mobile gas turbines currently on the Southaven site.

Gizmodo

• 27 turbines alleged to have been operating without a permit.

Gizmodo

• 41 permanent turbines authorized under the March 2026 Clean Air Act permit.

Gizmodo

• 1.2 GW capacity of the forthcoming permanent natural-gas plant.

Gizmodo

SpaceXAI indicated that the permanent plant will replace the temporary units and that removal can start in August. The Mississippi Department of Environmental Quality confirmed the timeline and the permit details. The Justice Department’s filing emphasized the strategic importance of uninterrupted AI power for national security.

Gizmodo

The phased removal aligns SpaceXAI’s power strategy with regulatory expectations while preserving the energy supply needed for large-scale AI workloads. Environmental groups view the agreement as a partial mitigation of alleged air-quality impacts, whereas the company frames the transition as a logistical step toward a more permanent, permit-compliant power source.

Gizmodo