Data Centers’ Energy Problem
The electricity required to train and operate artificial intelligence models is straining the capacity of energy grids worldwide. The fact that connecting to the grid can take years is driving technology companies toward temporary and portable energy options. Elon Musk has taken a significant supply chain step to address the energy shortage affecting xAI and related data center projects. According to information shared on August 29, 2026, SpaceX is bringing the production and casting operations for specialized blades and guide vanes used in gas turbines in-house.
Supply Times to Be Shortened by 18 Months
The production of turbine blades and guide vanes stands out as the most challenging stage in manufacturing the turbines used in aircraft jet engines and power plants. Casting a single batch of these sensitive components, designed to withstand extreme temperatures and high forces, can take 60 to 90 weeks.
The limited number of manufacturers worldwide capable of using this casting technology had caused delivery backlogs to extend through 2030. By bringing the casting operations in-house, SpaceX aims to shorten the delivery time for turbine generators by approximately 18 months.
Temporary Solutions and Solar Energy Goals
xAI was among the first companies to use portable natural gas turbines the size of truck trailers in order to bring the Colossus data center it is building in Memphis into operation in a short time. The company also acquired a fleet consisting of portable gas and diesel turbines worth approximately 1 billion dollars to secure its temporary energy needs. Musk stated that efforts to build solar energy generation infrastructure with an annual capacity of 100 gigawatts for Tesla and SpaceX are continuing, but that natural gas turbines will be needed for several more years until solar systems reach full efficiency.
End-to-End Infrastructure Strategy
Musk’s move into manufacturing power plant components to meet the high processing power needs of data centers is viewed as an element of his vertical integration strategy.
While the company is transferring its manufacturing experience in space technologies to energy infrastructure, it is also pursuing alternative ways to increase computing power at the same time. Indeed, SpaceX and NVIDIA’s plans to send artificial intelligence servers into orbit constitute another element of the broader vision developed in response to energy constraints on Earth.