SpaceX commits $2.8 billion to gas turbines for AI data centres amid regulatory scrutiny

SpaceX has committed to spending more than $2.8 billion on gas turbines to power data centres for its artificial intelligence unit, xAI, according to details disclosed in the company’s prospectus for its initial public offering on the Nasdaq. The investment supports the Colossus facilities in Tennessee and Mississippi, where a shortage of grid electricity has become a primary constraint on expansion.

The purchase follows public complaints, a lawsuit by the NAACP, and regulatory inquiries regarding carbon emissions and permit compliance. SpaceX agreed in March to buy $805 million worth of turbines from an unnamed company through 2029, and in late April, the company struck a pending deal for $2 billion worth of mobile gas turbines and related items from another vendor.

Portable gas turbines are viewed as quick, temporary solutions to the power shortages plaguing the US data centre boom, allowing operations without drawing from the grid. These units can be operated without a clean air permit for a year, a rule SpaceX has utilised. Last week, WIRED reported that 19 new portable turbines were added to Colossus 2 over the past two months, bringing the total to 46 units.

The expansion comes as xAI faces legal challenges. The NAACP and other advocacy groups sued xAI, alleging that the company had been operating 27 gas turbines without appropriate permits, posing risks to public health and the climate. Despite these concerns, SpaceX continues to scale its infrastructure, with more than $14 billion in construction in progress, including the value of data centre equipment that is not yet operational.

As of March, SpaceX had enough servers between the two data centres to use about 1 gigawatt of power, comparable to a large US city. The company is leasing access to some servers at the Colossus data centres for $15 billion annually to Anthropic, the AI startup that develops the Claude chatbot. A landmark agreement with Anthropic, valued at over $40 billion in total revenue, runs through May 2029.

Capital expenditure for the AI segment has accelerated rapidly, rising from $12.7 billion in 2025 to $7.7 billion in the first quarter of 2026 alone. This trajectory indicates an annualised run rate of approximately $30.8 billion, with approximately 60 per cent of the company’s 2025 capital expenditure allocated to xAI’s operations. The AI division reported revenue growth of 22 per cent but incurred a $6.4 billion loss during the same period.

SpaceX is aiming to debut on the Nasdaq stock exchange in the coming weeks, seeking to raise $75 billion. The prospectus highlights the financial health and long-term risks of the company, including the significant energy demands of its AI ambitions. Musk stated on Wednesday that SpaceX plans to sign additional deals to support the growing power needs of its data centres.