Musk's xAI uses gas turbines; solar vision shifts to space

Elon Musk's xAI, a company at the forefront of artificial intelligence, powers its data centers with dozens of unregulated natural gas turbines and plans to buy an additional $2.

AF
Amir Fakhoury

May 23, 2026 · 2 min read

Futuristic AI data center powered by gas turbines, with a distant vision of space-based solar power, symbolizing Elon Musk's xAI energy strategy.

Elon Musk's xAI, a company at the forefront of artificial intelligence, powers its data centers with dozens of unregulated natural gas turbines and plans to buy an additional $2.8 billion worth, according to TechCrunch and Bitcoin World. This immediate reliance on fossil fuels stands in stark contrast to Musk's long-championed vision of a sustainable future built on terrestrial solar and battery storage. It seems companies facing immense energy demands will increasingly turn to readily available, high-density power sources, even if they contradict stated long-term environmental goals, pushing truly 'green' solutions to a more distant, perhaps extraterrestrial, future.

The Role of Tesla Megapacks in xAI's Strategy

XAI has allocated $697 million over two years for Tesla Megapacks, as reported by Zamin Uz and TechCrunch. These grid-scale battery units manage peak electrical loads and stabilize the grid for its energy-intensive data centers, according to Bitcoin World. This substantial investment, alongside billions for natural gas turbines, reveals a pragmatic, almost desperate, scramble for scalable power. It suggests even Musk's own terrestrial battery technology falls short of AI's insatiable energy demands, requiring fossil fuel supplementation. This dual approach combines immediate, high-density power with robust grid stability, ensuring xAI's computational endeavors remain uninterrupted.

Musk's Vision: Solar Power Beyond Earth

SpaceX documents outline a future where solar energy is primarily space-oriented, positing orbital arrays as the ultimate power source for future data centers, according to Zamin Uz. These arrays are projected to generate over five times the energy of terrestrial ones due to continuous 24/7 illumination, a claim detailed by TechCrunch. This strategic pivot suggests terrestrial solar is deemed insufficient for advanced AI's immense demands. Musk envisions a radical, off-world solution as the ultimate sustainable power source. xAI's calculated bet: the long-term promise of space-based solar energy, touted by SpaceX, justifies a short-term reliance on unregulated natural gas turbines. It's a trade of immediate environmental principles for rapid AI development.

Current Data Centers as Stopgaps for Orbital Ambitions

The author of TechCrunch suggests current terrestrial data centers, powered by natural gas, are mere stopgaps until SpaceX deploys orbital servers. This reframes the reliance on fossil fuels not as abandoning renewables, but as a temporary, expedient measure. The substantial investment in fossil fuels and grid storage appears designed for rapid deployment and scalability, not long-term sustainability. Current infrastructure is provisional, awaiting a more ambitious, futuristic power solution.

It appears that by 2035, the energy mix for advanced AI infrastructure will likely still heavily feature fossil fuels, even as companies like SpaceX champion orbital energy solutions, as immediate power demands continue to override conventional green commitments.