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SpaceX is planning to invest more than USD 74 billion in two large-scale computing projects in Texas and Arizona, reflecting the growing importance of artificial intelligence to the company’s business.
The proposed facilities will support the computing capacity needed for AI operations. The larger of the two projects is planned for Cochise County, Arizona, with an estimated investment of around USD 50 billion. A second campus near Starbase in Texas is expected to cost more than USD 24 billion.
The Texas facility is planned across a site of about 444 acres. SpaceX intends to build a gas-fired power plant to supply electricity to the campus, rather than depend entirely on the local grid.
Construction at the Starbase site has already created more than 3,000 jobs, according to the company. The project is also expected to support more than 500 permanent positions once operational.
The investment is drawing attention from local authorities, with a property tax abatement for the project expected to be considered by the city commission in December.
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SpaceX’s proposed Arizona campus is expected to be considerably larger. The company estimates that construction could generate around 5,500 jobs, followed by approximately 1,000 permanent roles.
However, the project still needs local approval. It has also faced opposition from residents concerned about its impact on electricity supply and local resources. A petition opposing the development has reportedly gathered around 2,400 signatures.
SpaceX has said it is working with local electric cooperatives and believes the project could reduce electricity bills for members by as much as 20%. The company has also proposed using dry-cooling technology, saying the facility would not require industrial groundwater use.
The planned campuses come as AI contributes a growing share of SpaceX’s revenue. The company reported that AI activities generated more than half of its third-quarter revenue, surpassing its traditional rocket and Starlink businesses.
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The proposed investments show the scale of computing infrastructure SpaceX is preparing to build. But the Arizona project, in particular, will have to clear local regulatory hurdles before construction can move ahead.
The projects also put a spotlight on a wider challenge facing large AI developments: securing enough electricity and resources to run increasingly powerful computing facilities.