SpaceX Is Spending $2.8 Billion to Buy Gas Turbines for Its AI Data Centers
SpaceX is investing over $2.8 billion in gas turbines to power its AI data centers, including Colossus 2 in Southaven, Mississippi. This move comes amid public complaints, a lawsuit from the NAACP, and regulatory inquiries regarding potential carbon emissions and a lack of proper environmental permits for its turbine operations. The company is doubling down on this strategy despite ongoing environmental concerns.
Elon Musk's SpaceX has committed over $2.8 billion to acquire gas turbines for its artificial intelligence unit's data centers, according to a recent regulatory filing. This substantial investment highlights the company's strategy to address the growing electricity demands of its AI operations, including those supporting xAI's Grok chatbot.
SpaceX operates data centers known as Colossus 1 in Memphis, Tennessee, and Colossus 2 in Southaven, Mississippi. The decision to rely heavily on portable gas turbines has drawn criticism, prompting public complaints, a lawsuit filed by the NAACP and other advocacy groups against xAI, and regulatory inquiries. Critics allege that SpaceX has been operating numerous turbines without proper clean air permits, raising concerns about carbon emissions, public health risks, and environmental compliance. Recent reports indicate that 19 new portable turbines were added to Colossus 2 in Southaven, bringing its total to 46 units.
The investment details were part of SpaceX's prospectus for its upcoming initial public offering, designed to inform potential investors about the company's financial health and long-term risks. SpaceX has also entered into a significant leasing agreement, providing server access at its Colossus data centers to AI startup Anthropic for $15 billion annually, with plans for additional deals. The company projects substantial growth in power needs, with its current data centers capable of consuming about 1 gigawatt of power.