SpaceX said on Thursday it will remove the unpermitted gas turbines currently supplying electricity to xAI’s data centres near Memphis in the United States as it transitions to a permanent 1.2-gigawatt natural gas power plant.

The company said the turbines will remain in operation until July 2027 while the new facility is being completed.

SpaceX added that it is currently using 69 gas turbines to power xAI’s Colossus data centres, many of which have been operating for several months.

SpaceX acquired xAI in February and disclosed in its initial public offering filing that it plans to spend about $2.8 billion on gas turbines for its data centres over the next three years.

The company maintains that it can legally operate the existing turbines without permits because they remain mounted on the trailers on which they were delivered.

However, federal regulations state that turbines of the size being used by xAI require permits regardless of whether they are trailer-mounted, based on their capacity and the manner in which they are being operated