SpaceX Plans $24B Texas AI Hub With 750 MW Gas Plant

MONTREAL (Oil Monster): SpaceX is seeking approvals for a natural gas-fired power plant and supercomputing campus at Starbase, Texas, as part of a planned investment exceeding $24 billion. State permitting documents describe approximately 750 megawatts (MW) of proposed gas-fired generating capacity.

The company confirmed its investment plans on November 12, 2026, saying the computing campus would generate its own electricity rather than draw power from the public grid.

SpaceX Plans Dedicated Gas Power for AI Computing

The proposed development near the Port of Brownsville would combine a large-scale supercomputing facility with company-owned power generation. SpaceX intends to construct, own and operate both facilities.

Separate Texas air-permit reporting identifies 35 natural gas turbines with approximately 748 MW of initial capacity. The City of Starbase's economic development notice does not specify the generating capacity, and the final plant configuration remains subject to regulatory approvals.

SpaceX said the campus would support advanced AI training and applications in medical research, emergency response, manufacturing and national security, along with research into future space-based computing systems.

Also Read: Wisconsin Approves Natural Gas Plants to Meet Rising Data-Center Power Demand

Starbase to Consider Tax Incentives December 9

SpaceX has requested a property-tax abatement and a related economic development agreement. The Starbase City Commission will consider both requests at a public hearing scheduled for December 9.

The approximately $24 billion estimate applies to the project's initial phases, with possible future expansion. The notice does not disclose the proposed tax abatement's value or duration.

According to SpaceX, development has already generated more than 3,000 construction jobs and is expected to support over 500 permanent positions. The company said the planned investment builds on more than $15 billion previously invested in Starship and related Starbase infrastructure.

OilMonster Industry Edge | AI Power Demand Moves Behind the Meter

SpaceX's proposal highlights an emerging opportunity for natural gas infrastructure: large AI computing campuses that generate their own electricity rather than rely entirely on utility-grid connections.

Dedicated generation could reduce grid-interconnection delays, but it also requires reliable fuel delivery, environmental permits and ongoing power-plant operations. The proposed 750 MW represents generating capacity, not confirmed continuous consumption or an approved operating facility.

SpaceX Commits $220 Million to Water Infrastructure

Separately, SpaceX announced a $220 million commitment to regional water and wastewater infrastructure in Brownsville and Cameron County.

The company said $40 million had already been provided to the Brownsville Public Utilities Board. Planned improvements could add approximately 20 million gallons per day of water treatment and supply capacity through reuse and brackish-groundwater treatment.

Additional Natural Gas Pipeline Projects

SpaceX is also pursuing dedicated natural gas infrastructure for Starship operations, including a proposed 32.4-mile pipeline in Florida and an approximately eight-mile connection serving its South Texas launch facilities.

The Florida proposal would connect SpaceX-related facilities to the existing Florida Gas Transmission system. The Texas pipeline is associated with methane fuel production for Starship launches, and a direct connection to the proposed AI power plant has not been established.

What Comes Next

The December 9 public hearing will address local tax incentives and an economic development agreement, not final authorization for every component of the project.

Separate permitting and infrastructure approvals remain important milestones before the proposed power plant and supercomputing facilities can operate.

Explore More

SpaceX Plans Eight-Mile Natural Gas Pipeline for Starship Launches

Courtesy: Interesting Engineering.