SpaceX Plans $24bn Gas-Fired Power Plant and Data Centre in Texas

SpaceX is planning an estimated $24 billion investment in a gas-fired power plant and supercomputing facility at Starbase in Texas, as the company expands its artificial intelligence infrastructure and seeks greater control over the energy required to operate large-scale computing facilities.

The proposed development would see Space Exploration Technologies Corp (SpaceX) construct, own and operate both facilities, according to a public hearing notice issued by the Starbase City Commission. The estimated investment covers the project’s initial phases, with construction potentially extending across multiple stages and further expansion possible.

SpaceX has applied for a property tax abatement and a related economic development agreement. The Starbase City Commission is scheduled to consider the proposals at a public meeting on 9 December 2026.

The notice does not specify the proposed tax incentive’s value or duration. It also does not disclose the power plant’s generating capacity or the planned computing facility’s scale. The $24 billion figure is therefore an estimated capital investment for the initial phases, rather than a confirmed final project cost. Reuters+2

SpaceX plans dedicated power generation for AI computing

The proposed project reflects the increasing importance of electricity availability in the development of large-scale AI infrastructure.

Data centres and supercomputing facilities require substantial and continuous electricity to operate servers, networking systems and cooling equipment. As technology companies expand computing capacity, securing reliable power supplies has become an important consideration in project development.

By building and operating its own gas-fired power plant, SpaceX could reduce its dependence on connections to the main Texas electricity grid. Reuters reported that the arrangement could help the company avoid a potentially lengthy wait for grid access.

This approach would give SpaceX greater control over the relationship between electricity generation and computing operations. It could also allow the company to coordinate infrastructure development around its expected computing requirements.

However, the public notice does not establish how much electricity the proposed plant would generate, how much of that capacity would be allocated to the computing facility or whether additional power sources would be required.

The proposal therefore represents a significant planned investment in integrated energy and computing infrastructure, although its eventual operating capacity remains unclear.

$24bn investment adds to SpaceX’s AI infrastructure expansion

The Texas proposal comes as SpaceX increases its involvement in the artificial intelligence and computing markets.

The company acquired Elon Musk’s AI business xAI earlier in 2026, bringing its aerospace, satellite connectivity and AI activities under a broader corporate structure.

SpaceX has also been developing a business around providing computing capacity to external customers, including major technology companies.

In its third-quarter 2026 results, SpaceX reported revenue of $14.6 billion, representing a 161% increase from the corresponding period a year earlier. Its Super Intelligence segment generated $7.56 billion in quarterly revenue, compared with $813 million in the third quarter of 2025, according to the company’s financial disclosure filed with the US Securities and Exchange Commission.

The results demonstrate the growing financial contribution of its AI-related business. They also provide context for the proposed investment in additional computing and power infrastructure. SEC+1

SpaceX’s computing operations include renting infrastructure capacity to external customers. Reuters identified Google and Anthropic among the companies using its computing services.

The planned Texas development could support the company’s longer-term infrastructure requirements, although SpaceX has not disclosed the computing capacity or customer commitments associated with the proposed facility.

Natural gas infrastructure could support Starbase operations

The proposed power plant is also connected to SpaceX’s broader plans for natural gas infrastructure at Starbase.

SpaceX affiliate Lone Star Mineral Development has filed plans for an approximately eight-mile natural gas pipeline, known as Starpipe, to supply the Starbase area.

The pipeline is scheduled to enter service by January 2027, according to filings reviewed by Reuters.

The proposed pipeline is intended to supply natural gas to a separate facility planned to convert the fuel into liquid methane for SpaceX’s Starship rocket programme.

Although the pipeline and the proposed gas-fired power plant are related through their reliance on natural gas, the available public information does not establish that the pipeline will supply the proposed power station.

The developments nevertheless illustrate how SpaceX is pursuing greater control over infrastructure supporting its operations, including fuel supply, energy generation and computing capacity. Reuters+1

Data centre investment faces growing regulatory and political scrutiny

SpaceX’s proposal comes amid increasing debate in the United States about the electricity, land and infrastructure requirements of large data centre developments.

The rapid expansion of AI computing has encouraged technology companies to pursue larger facilities and secure additional power-generation capacity. However, these developments can also face opposition over their potential effects on electricity networks, local resources and communities.

Reuters reported that voters rejected data centre proposals in 40 of 41 local ballot measures in the period covered by its report, highlighting the growing public scrutiny surrounding such projects.

For developers, this creates an additional consideration beyond securing investment and computing equipment. Local government approvals, tax incentives, infrastructure availability and community acceptance can influence project development.

SpaceX is seeking local economic incentives for its Starbase proposal, with the December public meeting providing an important next step in the approval process.

The outcome could offer further information about the proposed tax arrangements and the local government’s position on the development.

What SpaceX’s Texas project means for the energy and technology sectors

The proposed investment highlights the growing commercial relationship between electricity generation and digital infrastructure.

For natural gas suppliers, power equipment manufacturers, engineering contractors and construction companies, large computing developments can create potential demand for generation facilities, fuel infrastructure and associated services.

For data centre operators, SpaceX’s approach illustrates an alternative to relying exclusively on conventional grid connections. Companies facing delays or constraints in obtaining electricity may consider dedicated generation or other long-term energy procurement arrangements.

The strategy also has implications for utilities and energy developers. If more technology companies pursue dedicated power assets, the relationship between large electricity consumers and regional power networks could evolve.

However, gas-fired generation also introduces considerations involving fuel costs, emissions, permitting and long-term energy strategy. The project’s eventual economics will depend on its generating capacity, construction costs, operating requirements and the computing demand it is designed to serve.

The $24 billion proposal is therefore significant not only for SpaceX but also for companies operating across the energy, engineering, construction and digital infrastructure supply chains.

Starbase approval process is the next milestone

The next important development is the Starbase City Commission’s scheduled public meeting on 9 December 2026, when it will consider SpaceX’s property tax abatement request and associated economic development agreement.

Further details about the proposed plant’s generating capacity, computing infrastructure, construction schedule and investment phases will be important in assessing the project’s eventual scale.

For now, the proposal demonstrates how the expansion of AI computing is influencing infrastructure investment decisions, with energy availability becoming a central consideration in the development of large-scale technology facilities.

SpaceX’s planned combination of gas-fired power generation and supercomputing infrastructure could become a notable example of technology companies integrating energy assets into their computing strategies.

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