Elon Musk acquires APR Energy to power AI data centers

Elon Musk completed a quiet acquisition of APR Energy, a U.S. company that builds mobile gas‑ and diesel‑powered turbines, in May. Federal Trade Commission filings show the deal was approved without antitrust review and valued the transaction at over $1 billion, with a minority stake sold for about $50 million.

APR Energy’s fleet can generate more than 1 GW of electricity on trailer platforms, allowing rapid deployment for off‑grid power. Musk is expected to use the assets to supply the high‑energy demands of xAI’s AI data centers, including the Grok system, bypassing delays associated with connecting to public grids.

The purchase has drawn criticism from environmental groups and has been linked to ongoing lawsuits alleging violations of the U.S. Clean Air Act at xAI’s Mississippi data‑center sites, where similar mobile turbines are already in use. The move also marks a shift for Musk, who previously denounced fossil‑fuel use, as he now incorporates fossil‑fuel‑based power into his AI infrastructure strategy.