In March 2015, Elon Musk told Neil deGrasse Tyson that the burning of fossil fuels “the dumbest experiment in history, by far,” arguing that since reserves are finite and a clean-energy transition is inevitable, altering the atmosphere made no sense. Eleven years later, disclosures in the IPO filing for SpaceX (NASDAQ:SPCX<\/a>) revealed plans to spend more than $2.8 billion on natural gas turbines over three years to power AI data center operations, as reported by WIRED on May 20, 2026 and Benzinga on May 21, 2026. The turbines feed the Colossus compute complex near Memphis, Tennessee. <\/p>\n Of the total, roughly $2 billion is earmarked for mobile gas turbines, with a separate $805 million in turbine orders already placed and deliveries running through 2029. The power is for xAI, which is now part of SpaceX following a merger completed in early 2026 at a reported $1.25 trillion valuation, per Reuters, Built In and GovCon Wire. Teslarati reported in February 2026 that the merger was structured to keep legal liability and debt at arm’s length. <\/p>\n From Our Partners <\/p>\n Written by Insiders. Answering to No One. <\/p>\n Before Doomberg published a word, its team spent long careers in heavy industry, private equity, and the hard sciences. They take no advertisers and serve no institution \u2014 which is why their lateral-thinking coverage of energy, finance, and geopolitics reads nothing like consensus financial media. Doomberg has set aside a discounted rate exclusively for 24\/7 Wall St. readers \u2014 it isn’t available on their main page. <\/p>\n Claim the 24\/7 Wall St. Rate \u2192<\/a> <\/p>\n The scale of compute demand is visible in the tenant list. Data Center Dynamics reported on May 21, 2026, based on the SpaceX IPO filing, that Anthropic is set to pay Musk’s firm $1.25 billion a month to rent xAI data center space. On the call for SpaceX’s first quarter as a public company, Musk said AI segment revenue reached $2.6 billion, up 247% year over year, with compute capacity now at 1.4 gigawatts nameplate and a target of 20 gigawatts of power, cooling, and electrical equipment online by the end of 2027. <\/p>\n Story Continues <\/p>\n Why Gas, and Why Now <\/p>\n AI data centers require large, fast-ramping loads that the U.S. grid often cannot supply on the required timeline. Some regions have imposed moratoriums on new data center grid connections extending into 2030. Operators are turning to on-site natural gas, sometimes called “behind-the-meter” or “dark energy” power. Electrek reported on August 10, 2026 that Musk’s Terafab chip plant will run on gas rather than Tesla solar. <\/p>\n The Memphis Backstory <\/p>\n xAI has operated dozens of turbines near Memphis. Reported counts have ranged from roughly 46 to 69 turbines at various points in different reports, with only about 15 officially permitted by state regulators. xAI’s position is that trailer-mounted “mobile” units do not require the same state air quality permits as fixed installations. The EPA has determined this interpretation puts the company in violation of federal air pollution rules. <\/p>\n The NAACP and the Southern Environmental Law Center have sued xAI seeking an injunction, citing potential nitrogen oxide emissions of more than 2,000 tons annually in a region with among the poorest air quality in the country. The U.S. Department of Justice has weighed in on the company’s side, characterizing the turbines as a matter of national, economic and energy security, per Electrek reporting on June 17, 2026. The litigation remains active. <\/p>\n Where It Stands <\/p>\n TechCrunch reported on July 31, 2026 that SpaceX will not remove all of xAI’s unpermitted turbines for another year. The AI Insider reported on August 3, 2026 that the unpermitted units will be phased out by 2027 while a permanent gas plant is built, reported at roughly 41 turbines in the 16 to 50 megawatt range. Battery storage is going in alongside the gas: Electrek reported on June 4, 2026 that xAI purchased another $269 million of Tesla Megapacks from Tesla (NASDAQ:TSLA<\/a>). <\/p>\n Tesla shares closed at $342.27 on August 14, 2026, down 23.89% year to date. SPCX closed at $140. The unresolved question is whether Memphis becomes a template for how AI infrastructure gets built in the United States, or a warning. <\/p>\n What $28 a Month Buys a Serious Investor <\/p>\n Through this reader link<\/a>, 24\/7 Wall St. readers get their first year of Doomberg for $332 \u2014 17% off the standard $400, which works out to about $28 a month. That buys six to eight deeply researched articles a month on energy, finance, and geopolitics, the full archive, and one of the most resource-rich comment sections anywhere, where engineers, executives, and fund managers add context under every piece. After the first year it renews at the standard rate, and you can cancel anytime. If today’s article touched energy or the macro picture, odds are the green chicken has already gone three layers deeper \u2014 see for yourself at the discounted rate<\/a>. <\/p>\n<\/a> Shutterstock What the $2.8 Billion Buys <\/p>\n