Elon Musk acquired a company with energy capacities exceeding 1 GW to develop Grok

Elon Musk acquired APR Energy, a company that operates mobile gas and diesel power plants with a total capacity of over 1 GW. According to Electrek, the deal was valued at approximately $1 billion.

The acquisition was not officially announced. The information emerged from documents filed with the U.S. Federal Trade Commission, which approved the deal in May 2026 without additional antitrust review. The company’s value exceeds $1 billion.

APR Energy does not operate traditional power plants. The company specializes in mobile gas turbines and diesel generators that can be deployed within days. Such units are used to quickly provide electricity to large facilities, including data centers.

The acquisition is linked to the development of xAI’s infrastructure. Musk’s company plans to use APR Energy’s capacity to power data centers where the Grok AI model is trained and operates.

The Colossus and Colossus 2 supercomputers in Memphis already use gas turbines to support their computing infrastructure. The acquisition of APR Energy will allow xAI to have its own power generation source and accelerate the launch of new data centers without waiting for grid connections.

Previously, APR Energy’s assets belonged to Fortress Investment Group, which acquired them in late 2024, reorganized the business under the name New APR Energy LLC, and then sold it to Musk’s entities.

The deal appears unusual given Musk’s long-standing statements about the need to transition to renewable energy sources. Tesla and SpaceX have repeatedly promoted the development of solar energy and energy storage systems; however, to meet the growing energy demands of xAI’s AI infrastructure, the entrepreneur has bet on gas generation.

Source: electrek.co