SpaceX plans $24 billion gas power plant and super-compute facility in Starbase, Texas, Reuters reports

SpaceX is planning a roughly $24 billion gas-fired power plant and super-compute facility in Starbase, Texas, according to a public hearing notice, Reuters reported on November 9.

A tax abatement request

The filing shows SpaceX, which bought Elon Musk's AI lab xAI earlier this year, has applied for a property tax abatement for the project. The Starbase City Commission will consider the abatement, plus a related economic development agreement, at a public meeting on December 9.

The notice describes $24 billion as the estimated capital investment for the project's initial phases, adding that the work may be done in multiple phases and could include future expansions. SpaceX would construct, own and operate the facilities, making it one of the largest private investments in the Rio Grande Valley. The notice did not say how large the abatement would be or how long it would last, nor did it give the plant's generating capacity or the scale of the computing operation.

Skipping the grid queue

Building its own power plant could let SpaceX avoid a years-long wait to connect to Texas' main power grid. SpaceX affiliate Lone Star Mineral Development has filed plans for an 8-mile natural gas pipeline to Starbase, called Starpipe, scheduled for service by January 2027. Reuters reported in June that it will feed a planned plant to turn gas into liquid methane for Starship rockets.

Growing opposition to data centers

The request comes as opposition to data centers grows: voters rejected them in 40 of 41 recent local ballot measures, and Democrats, some of whom campaigned on pausing new projects, won control of the US Congress and the Texas governor's office in the midterm elections.

SpaceX last month reported a 161% jump in third-quarter revenue and a ninefold increase in AI revenue. The company has been renting out computing capacity to Google, Anthropic and others.

Sources: CNA / Reuters, U.S. News / Reuters, Investing.com / Reuters