SpaceX is planning a major infrastructure investment in Starbase, Texas, with a proposed $24 billion gas-fired power plant and supercomputing facility. The project reflects the company’s growing focus on AI computing infrastructure and its efforts to secure dedicated power for large-scale operations.
According to a public hearing notice, SpaceX has applied for a property tax abatement for the proposed development. The Starbase City Commission is scheduled to consider the tax incentive request and a related economic development agreement at a public meeting on December 9.
The estimated $24 billion investment covers the project’s initial development phases. The notice also indicates that construction could take place in multiple stages, with scope for future expansion. SpaceX would construct, own and operate the facilities, making the development one of the largest private investments in the Rio Grande Valley.
By building its own power generation facility, SpaceX could avoid waiting several years for a connection to Texas’ main electricity grid. However, the public notice has not disclosed the proposed tax abatement amount or its duration. Details about the plant’s power generation capacity and the scale of the computing facility also remain unspecified.
The proposed development comes amid growing opposition to data centre projects across the US. Voters have rejected such developments in 40 of 41 local ballot measures. The political debate has also intensified, with Democrats who campaigned for restrictions on new projects gaining control of the US Congress and the Texas governor’s office in the midterm elections.
SpaceX, which acquired Elon Musk’s AI company xAI earlier this year, is also developing supporting energy infrastructure in the region. Its affiliate, Lone Star Mineral Development, has filed plans for an 8-mile natural gas pipeline called Starpipe. The pipeline is scheduled to become operational by January 2027 and will supply gas to a planned facility that will convert it into liquid methane for Starship rockets, according to filings reviewed in June.
The proposed investment also follows strong financial growth for the company. Last month, SpaceX reported a 161% increase in revenue and a 9-fold rise in AI revenue during the 3rd quarter. The company has also been leasing computing capacity to Google, Anthropic and other businesses.
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