When you can’t buy enough of something fast enough, you build it yourself. That’s the logic Elon Musk is now applying to gas turbine components, signaling that SpaceX and Tesla may vertically integrate into manufacturing turbine blades to keep his AI data centers from running out of electricity.
A $2.8 billion bet on gas turbines
SpaceX has committed over $2.8B to gas turbines for xAI’s data center operations. That figure includes an approximately $805 million agreement and a potential $2B deal for mobile turbine units, reflecting the sheer scale of power these facilities demand.
The company has also been running more than 46 portable gas turbines at Colossus sites, adding over 500 MW of generation capacity.
Musk acquired APR Energy, a mobile power provider, for approximately $1B. The deal cleared antitrust review in May 2026 and gives SpaceX access to a mobile gas and diesel turbine fleet exceeding 1 GW of capacity.
SpaceX also recently purchased five 380 MW-class turbines from Doosan Enerbility as part of plans for permanent gas plants to complement the mobile fleet.
Why make your own turbine blades
Musk indicated on a podcast that SpaceX and Tesla would likely need to manufacture turbine blades internally because supply-chain constraints on casting and forging were creating unacceptable delays.
Gas turbine blades operate at extreme temperatures, require specialized superalloy castings, and are produced by a relatively small number of foundries worldwide.
Environmental pushback and regulatory tangles
xAI’s operations have drawn lawsuits from the NAACP and environmental groups alleging Clean Air Act compliance violations related to the unpermitted turbines running at Colossus sites.
SpaceX’s regulatory filings have confirmed plans to remove unpermitted, high-emission gas turbines while constructing a permitted 1.2 GW permanent power plant to sustain operations long-term.