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SpaceX plans to invest around USD 24 billion in a natural gas power plant and AI data center in Starbase, Texas. The company wants to build and operate both facilities to supply electricity directly to its computing operations. A public hearing notice outlines the initial investment and possible future expansions across multiple development phases.
The project could help SpaceX avoid long waits for connections to Texas' main electricity grid. The company has applied for property tax relief, which the Starbase City Commission will consider on December 9, 2026. The proposal also includes a related economic development agreement for large-scale development.
The proposed development would cover an estimated 444-acre site near Brownsville, Texas. SpaceX expects to build the facilities in stages, with room for additional expansion later.
The company has not shared the power plant's capacity or the data center's computing size. The public notice also does not explain the expected construction timeline or final project costs.
The planned power supply could become important as demand for AI computing continues to increase. Large data centers need huge amounts of electricity to train and run advanced AI models. SpaceX wants to produce that electricity independently instead of relying entirely on external suppliers.
The company also has plans for a natural gas pipeline called Starpipe. Its affiliate, Lone Star Mineral Development, has proposed an eight-mile pipeline connecting gas supplies to Starbase. The pipeline could begin service by January 2027, according to company filings.
SpaceX plans to use the gas for a separate facility that produces liquid methane for Starship rockets. This connects the company's energy plans with its growing rocket operations.
The expansion also follows strong growth in SpaceX's artificial intelligence business. The company reported a 161% increase in third-quarter revenue last month. Its AI revenue also increased ninefold during the same period.
SpaceX currently rents computing capacity to major technology companies, including Google and Anthropic. The proposed Texas data center could further expand its computing resources.
However, the project still needs local approval for its proposed tax benefits. The December 9 meeting will provide the next important update on SpaceX's plans.
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