xAI plans to buy $2.8B in gas turbines as lawsuit targets generators

In short: SpaceX’s IPO filing says Elon Musk’s xAI plans to buy $2.8 billion more in natural gas turbines for its data centers, even as it faces a lawsuit over similar generators.

What happened

A SpaceX IPO filing released Wednesday says its xAI division will buy $2.8 billion worth of natural gas turbines over the next three years. Turbines are large machines that burn natural gas to make electricity, like a big on site power plant.

The filing says one deal worth $2 billion is for “mobile gas turbines.” These are turbines that can be moved and are often kept on trailers, like a generator you could tow, but much larger.

xAI is already under legal pressure for using gas turbines at a data center near Memphis, Tennessee. The NAACP filed a lawsuit last month, arguing that xAI has been operating dozens of turbines without proper permits and worsening air quality in an area that is already heavily polluted.

According to the report, xAI has permits for 15 turbines. As of a few weeks ago, it was using 46. The turbines can emit more than 2,000 tons a year of NOx, a group of pollutants that can help create smog and make asthma worse.

xAI has argued it can run the turbines for up to a year without permits because they are “mobile.” The U.S. Environmental Protection Agency has ruled that xAI was operating the turbines in violation of federal law.

Why it matters

AI data centers use huge amounts of electricity, like running a small city’s worth of computers. When a company powers that demand with fossil fuel generators, it can create local air pollution issues and legal fights that may affect how and where these facilities operate.

Source: TechCrunch AI