Elon Musk’s Colossus 1 and 2 data centers are in hot water for allegedly using unpermitted mobile natural gas turbines to generate the power they need. But even though he also owns a solar power generation and large-scale battery storage business through Tesla Energy, Electrek reports that he instead doubled down on mobile generators after purchasing APR Energy. It’s not exactly known how much Musk paid for the company, but disclosures revealed that he spent more than $50 million on the 5% stake held by a minority shareholder. This meant that he likely poured at least a billion dollars into the entire firm if every shareholder received the same amount.
Deals of this magnitude often come with press releases, but it was only made public because of a Federal Trade Commission (FTC) early termination notice that approved it without requiring further review. It’s unclear why Musk did not publicize it, but SpaceXAI is currently facing allegations that its data centers in Memphis, Tennessee, are generating massive amounts of pollution that mostly affect nearby black communities. It makes financial sense for Musk to acquire APR Energy, especially if he’s spending millions of dollars renting these generators. However, he’s also trying to win over his data centers’ neighbors, like giving a 50% discount on all residential Starlink plans in Memphis and Southaven, and news like this would certainly undermine his efforts.
