Elon Musk has acquired APR Energy in a deal valued at more than US$1 billion, giving xAI direct access to mobile power-generation equipment. The acquisition could help supply electricity more quickly to the computing infrastructure used to train the Grok AI model.
APR Energy’s appeal is not a conventional permanent power plant. Its gas turbines and diesel and natural-gas generators are mounted on trailers, allowing units to be moved to areas where additional electricity is needed.
Power in Minutes, Installation in Days
The company’s turbines are reported to produce electricity in less than 10 minutes after startup. Their installation can also be completed within days, a much shorter timeline than the years often required for permits and construction of permanent plants.
That speed addresses a growing constraint for generative AI developers. Data-center electricity demand can rise rapidly, while grid expansion may not be available on the same timetable.
xAI operates the Colossus and Colossus 2 supercomputers in Memphis, Tennessee, where they are used to train Grok. Tekno.kompas.com, citing Electrec, previously reported that the facilities had used mobile gas turbines as supplementary power sources.
| xAI System | Location | Role |
|---|---|---|
| Colossus | Memphis, Tennessee | Training the Grok AI model |
| Colossus 2 | Memphis, Tennessee | Training the Grok AI model |
Deal Surfaced in an FTC Filing
Neither Musk nor xAI publicly announced the acquisition. The transaction emerged through an early termination notice from the US Federal Trade Commission, dated May 14, 2026.
The notice said the acquisition could proceed without further antitrust review. APR Energy’s assets had previously been controlled by Fortress Investment Group.
Fortress acquired the assets in late 2024 and later sold them through New APR Energy LLC. The more than US$1 billion valuation underscores the value of power capacity that can be deployed without waiting for major grid upgrades.
Environmental Pressure Remains
The rapid-power strategy carries environmental concerns, particularly in Memphis. Several gas turbines were reported to have operated without environmental permits.
NAACP, the Southern Environmental Law Center, and Earthjustice have sued xAI over alleged Clean Air Act violations. The lawsuit followed the installation of dozens of gas turbines without emissions permits.
Those groups estimate the turbines could generate more than 2,000 tons of nitrogen oxide, or NOx, emissions. NOx is a major contributor to air pollution and smog.
The acquisition also contrasts with Musk’s long-standing promotion of solar energy and batteries through Tesla and SolarCity. Renewable projects and grid expansion can take longer to develop, while natural-gas turbines can provide power far more quickly but may add carbon emissions and local air pollution.
