SpaceX is entering the gas turbine manufacturing sector as it responds to a global effort to secure energy supplies for AI data centers. Elon Musk revealed on Saturday that the rocket manufacturer will start producing its own gas turbine components, emphasizing that relying solely on solar energy won’t suffice for the extensive power needed for its AI infrastructure development.
In a post on X, Musk stated that both SpaceX and Tesla are in a race to construct significant solar panel factories as swiftly as possible. However, he pointed out that this initiative will not adequately address the skyrocketing energy requirements. “Natural gas will still be needed to supplement and bootstrap solar for several years,” Musk noted, explaining that SpaceX plans to manufacture its own gas turbine blades and vanes, components known for their complex manufacturing processes.
Musk emphasized that by implementing in-house casting at SpaceX, the company could expedite the deployment of natural gas turbines by as much as 18 months, describing this as a significant advantage. The plans by SpaceX were initially reported by The Information. The company has also begun recruiting for a “blades and vanes foundry” located in Bastrop, Texas, where SpaceX already produces its Starlink terminals.
A job listing indicated that power generation represents a principal hurdle that could impede the global adoption of AI. The ongoing AI boom has prompted a substantial expansion of data centers across the United States, further straining electricity supplies and leading to public pushback.
In efforts to manage the energy demands of their data centers, several AI companies have moved towards developing natural gas power plants. Prominent companies like OpenAI, Amazon, and Microsoft have partnered to supply their data centers with natural gas. Similarly, Meta’s “Hyperion” data center located in northern Louisiana is anticipated to require ten new gas power plants to support its electricity consumption.
The surge in demand for natural gas generators has resulted in a worldwide shortage of gas turbines, compelling certain aerospace startups to adapt jet engines into turbines to satisfy AI data center needs. SpaceX has utilized mobile gas turbines to power its Colossus data centers positioned in Mississippi and Tennessee, which have drawn local complaints due to noise and environmental concerns.
Like many other technology leaders, SpaceX is actively investing in developing new data centers and securing the necessary AI computational power as it aims to enhance its AI models. The company invested $16 billion in AI infrastructure during the second quarter of 2026, with executives suggesting that similar levels of expenditure are expected in the upcoming quarters.
