SpaceX plans $24 billion Texas gas plant and AI data center

SpaceX plans a $24 billion project at Starbase, Texas, combining a gas-fired power plant with an AI data center. The proposal would give the computing facility its own power supply.^[1][2]

A city notice disclosed the plan, and SpaceX is seeking a tax break, with a vote reportedly weeks away. The project remains a proposal.^[2]

State policy adds uncertainty: incoming Governor Gina Hinojosa has advocated a moratorium on new hyperscale data centers—large facilities housing extensive computing equipment. That position poses a risk to the project; the coverage does not establish that a moratorium is in force.^[1]

If the project advances, SpaceX's spending would create demand for computing equipment, power-generation equipment and construction. Dedicated generation could support AI operations while adding fuel and plant-operating expenses; returns would depend on building and running both facilities at an affordable cost.^[2][3]

The tax break would affect SpaceX's project costs, while a state moratorium, if adopted, could delay development. For suppliers, the opportunity remains potential orders whose conversion into revenue depends on policy decisions and construction proceeding.^[2][1]

Impact