Tech

Musk quietly acquires APR Energy in $1 billion deal to power AI data centres

The Department of Justice seeks to dismiss Clean Air Act lawsuit as Musk’s businesses expand energy footprint

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: Engadget · original
Elon Musk bought a gas turbine company
Acquisition of mobile turbine provider marks significant pivot from previous fossil fuel criticism

Elon Musk has acquired APR Energy, a provider of mobile gas and diesel turbines, in a transaction valued at approximately $1 billion. The deal, which occurred quietly in May, adds a fossil fuel generation component to Musk’s portfolio and is expected to supply direct power for SpaceXAI’s data centres. The acquisition was first identified by Electrek following a filing, with no immediate public announcement issued by Musk or the company.

APR Energy specialises in mobile power generation solutions, producing gas and diesel turbines mounted on trailers. The purchase represents a notable shift in strategy for Musk, who previously described the continued reliance on fossil fuels as “the dumbest experiment in history, by far.” The move aligns with the substantial energy requirements of artificial intelligence infrastructure, where data centres demand significant power to operate.

The acquisition follows legal scrutiny regarding emissions from xAI’s data centre operations in Southaven, Mississippi. xAI faced a lawsuit under the Clean Air Act for using similar turbines at the facility. Reports indicate that the number of mobile turbines at the Mississippi site has increased significantly since the suit was filed.

Legal proceedings surrounding the Mississippi facility remain active. The Department of Justice is currently attempting to have the Clean Air Act lawsuit dismissed to facilitate the continued use of xAI’s Grok system by the US military. The outcome of this dismissal attempt is pending.

Musk’s expansion into fossil fuel infrastructure may extend beyond turbine ownership. His businesses are also reportedly involved in constructing a natural gas pipeline in Texas. The exact final purchase price of APR Energy remains an estimate provided by Electrek, as the parties involved have not confirmed the figure.

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