SpaceX is planning to build a $24 billion natural gas power plant and supercomputing facility in South Texas, underscoring how AI companies are moving to secure their own electricity supplies as computing demand grows.
The company plans to own and operate the facilities on 444 acres in Starbase, Texas, near the Port of Brownsville, according to a public hearing notice issued by the city.
The investment covers the project’s initial phases, which could be developed in stages and expanded later.
The Starbase City Commission will consider a property tax abatement and a related economic development agreement at a public hearing on Dec. 9. The notice does not disclose the size or duration of the requested tax incentives.
SpaceX’s proposal comes as technology companies confront growing constraints on electricity supplies for AI data centers. Building dedicated power generation could allow the company to reduce its dependence on grid connections that can take years to secure.
A separate state air-permit application describes plans for 35 natural gas turbines capable of producing 748 megawatts of electricity, according to the Rio Grande Valley Business Journal.