SpaceX Plans $24 Billion AI Supercomputer and Gas Power Plant in Texas
SpaceX has proposed one of the largest private infrastructure investments in American history: a $24 billion AI supercomputing facility and natural gas-fired power plant in Starbase, Texas. The plan surfaced in a public hearing notice from the City of Starbase and signals a major expansion of the company’s artificial intelligence and energy ambitions.
According to Bloomberg and Reuters, SpaceX plans to construct, own, and operate both facilities. The $24 billion figure represents the estimated investment in the project’s initial phases.
Starbase, located in Cameron County, is built around SpaceX’s main rocket factory and launch site. If completed, the project would rank among the largest private investments in the Rio Grande Valley.
A key strategic advantage of the plan is energy independence. Building its own power plant could help SpaceX avoid a potentially years-long wait to connect to Texas’ main electrical grid.
SpaceX acquired Elon Musk’s AI lab, xAI, earlier this year and has been renting computing capacity to clients, including Google and Anthropic. In its last quarter, the company reported a 161% jump in revenue and a ninefold increase in AI revenue.
The Starbase City Commission is set to consider a tax abatement for the project at a public meeting on December 9.
The proposal comes amid growing political opposition to data centers. Democratic Texas Governor-elect Gina Hinojosa called for a moratorium on new data center construction during her campaign.
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