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Forbes Daily Briefing

Elon Musk Installs ‘Quick And Dirty’ Turbines To Power xAI’s Memphis Data Centers

Forbes Daily Briefing

Forbes

Careers, Business, News, Entrepreneurship

4.612 Ratings

🗓️ 18 March 2025

⏱️ 5 minutes

🧾️ Download transcript

Summary

In a rush to get Colossus up and running, Musk’s AI company is relying on the same environmentally unfriendly, natural gas-powered turbines used to restore power in natural disasters.

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Transcript

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0:00.0

Here's your Forbes Daily Briefing for Tuesday, March 18th.

0:05.0

Today on Forbes, Elon Musk installs quick and dirty turbines to power XAI's Memphis

0:11.8

data centers.

0:14.6

When Memphis, Tennessee's grid couldn't provide all the electricity needed to power

0:18.2

XAI's new Colossus data center, the Elon Musk-led

0:22.2

artificial intelligence company turned to a quick and dirty solution, mobile natural gas turbines.

0:29.2

These power plants on wheels are usually a last resort during emergencies, not a permanent solution.

0:35.5

For example, they were crucial in restoring power in Puerto Rico after

0:39.0

Hurricane Maria left the island in ruins. But data centers around the country have started to use them

0:45.1

as a stopgap solution. There are at least four at the XAI site, possibly more, churning out not only

0:52.1

electricity, but pollutants like nitrous oxide and formaldehyde.

0:56.9

But shortly after the data center became operational, it became apparent to local journalists,

1:01.9

along with environmental activists, that no public agency had actually authorized the use of

1:06.9

mobile gas turbines that are powering it. Patrick Anderson, a lawyer with the Southern Environmental Law Center, wrote the Shelby County

1:14.7

Health Department in August 24, quote, to verify that XAI is operating these turbines without

1:21.1

the required air permit and bring an appropriate enforcement action for failing to obtain a permit.

1:27.2

XAI did not respond to a request from Forbes for comment.

1:31.3

It wasn't until January 2025 that XAI's sister company, CTC Property LLC,

1:38.0

finally submitted a formal permit application to the Shelby County Department of Health

1:42.0

to not only backdate approval of the four mobile

1:44.6

gas turbines already in operation, but to add 11 more. That would give the site 150 megawatts

1:51.6

of power, on top of the 150 megawatts that the local grid is already providing it. All told,

...

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