SpaceX outlines $24B Starbase power and AI hub

SpaceX unveils $24 billion Starbase power and compute plan

SpaceX is planning a combined gas-fired power plant and supercomputing facility at Starbase, Texas, with an estimated initial-phase capital investment of approximately $24 billion. The proposal, disclosed in a City of Starbase public notice, would create a large AI-focused "super-compute" campus supported by its own dedicated generation rather than relying solely on the local grid.

The project remains at the proposal stage and has not been approved or built. Public filings describe the plan as one of the largest single-site hardware investments tied to a launch company, positioning SpaceX alongside other developers racing to secure power and infrastructure for energy-intensive artificial intelligence workloads.

Site details: 444-acre tract beside Starship operations

The notice identifies Space Exploration Technologies Corp. as both applicant and property owner for the development. The site covers approximately 444 acres inside Starbase city limits, east of Brownsville and located between Boca Chica Boulevard and the Port of Brownsville in Cameron County, Texas.

The planned complex would sit near SpaceX’s existing Starship manufacturing and launch activities at Starbase. The notice states that the company proposes to construct, own and operate the gas-fired power plant and super-compute facility, and that the project may be built in multiple phases with potential for future expansion beyond the initial $24 billion investment.

Tax incentives under review at December 9 hearing

To support the build-out, SpaceX is seeking local economic incentives tied to the Starbase site. The City of Starbase public notice, posted on November 6, sets a public hearing for December 9, 2026 at 7 p.m., when commissioners are scheduled to consider the requested agreements.

Two incentive tools are on the agenda: a property tax abatement under Chapter 312 of the Texas Tax Code and an economic development agreement under Chapter 380 of the Texas Local Government Code. The notice does not disclose proposed abatement percentage, its duration, the value of the requested tax relief, or terms and performance commitments for the Chapter 380 agreement.

Power plant design and capacity from air permit filings

A separate air permit application to the Texas Commission on Environmental Quality outlines the proposed power plant configuration.

The same air permit materials reference a later configuration using eight larger GE Vernova 7E turbines, with total capacity of about 708 megawatts. The application also includes a proposed annual nitrogen oxides emissions limit of 248.86 tons, near a federal regulatory threshold, underscoring that environmental permitting will be a key part of the review process and that no final approvals have yet been granted.

Unanswered questions on compute, infrastructure and operations

Despite the large headline investment, many aspects of the Starbase campus remain unspecified in public records. The notice and related documents do not identify a data center operator, list the types or quantities of chips and accelerators to be installed, or provide job counts and a construction schedule.

The notice does not say expected electricity demand, water use, cooling design, wastewater handling or building footprints.

Project context in the wider AI and power debate

The Starbase proposal would pair a large-scale computing campus with dedicated natural gas generation at a time when grid connections and transmission capacity are increasingly constraining data center growth. Industry research points to rapid expansion in global data center power demand in the coming years.

At the local level, the December 9 hearing on Chapter 312 and Chapter 380 incentives is the next formal milestone. Beyond that vote, the project still depends on separate environmental permits and additional development approvals, and the ultimate scale, timing and operating model will hinge on future permitting and development decisions.